LME Lead Stock to Hit 3-Year High

London Metal Exchange’s lead inventory keeps increasing recently. The world stock increased by 11,550 tonnes to 94,875 tonnes on Tuesday from Monday approaching first 100,000 tonnes mark in 3 years. The increase in Singapore represents large portion of near 30,000 tonnes increase in the month. The supply gets surplus in Asian market after shortage in 2007. LME lead stock increased by 27,575 tonnes or 41% in the month. Singapore represents 27 percentage points of the increase. Asian players apparently liquidate the material when LME market keeps downward trend. Singapore’s LME lead stock increased by 5,350 tonnes to 26,700 tonnes on Tuesday from Monday, which was the highest level since February 2007. The inventory increased by more than 5,000 tonnes a day for 3 days in a row. Dubai’s stock increased by 6,000 tonnes. Lead supply was very tight worldwide due to shipment stoppage of Esperance port in Australia and idle of Mt. Isa mine. The supply was short especially in Southeast Asia. Singapore’s LME lead stock decreased to less than 1,000 tonnes in September 2007 when the seasonal demand is peak for repair battery. LME lead settlement price increased by US$ 64 to US$ 1,802 per tonne on Tuesday from Monday. The market canceled previous day’s drop. The market could hit bottom after around 40% decrease in 2 months. However, the higher inventory could cool the market again.