LME Lead Price Plunges Despite of Low Inventory

Lead price at London Metal Exchange (LME) marked the yearly bottom. LME lead settlement was US$ 1,150.5 per tonne on 23 October, which lowered by US$ 89.5 from the previous day and hit the bottom in 2 years and 2 months. Lead inventory at LME designating warehouses is decreasing, especially in Asian regions. However, the price isn’t linked with the inventory shrinkage with strong selling powers.

LME lead price plunged by 35% from the beginning of this month and by 71% in about a year, which hit US$ 3,980 per tonne on 15 October, 2007. The down range in a year is the widest among LME base metals.

Lead battery sales are inactive in USA and Europe where new car sales are remarkably declining. Meanwhile, the demand season of repairing batteries started toward winter. LME lead inventory was 55,200 tonnes on 22 October, almost half compared with late June of this year. There was no inventory in Dubai warehouse while the inventory decreased by 95% in Singapore. Lead inventory seems to be short especially in Southeast Asia due to the import stoppage from China.