Japan Official Pb Price Revised Down to 231,000 Yen/t

Mitsubishi Materials announced on Monday the firm revised down its electrolytic lead ingot selling price, the market indicator, by 29,000 yen to 231,000 yen per tonne for domestic shipment in September. Smelters’ breakeven point with imported ore lowered in response to dropdown of overseas lead market and stronger yen exchange rate against US dollar. The monthly average would be 241,200 yen without any more revision within September.

Lead settlement price at London Metal Exchange (LME) was US$ 2,109.5 per tonne on September 11, which plunged by US$ 71.5 from the previous day. Telegraphic transfer selling rate on Monday was 91.63 yen per US dollar. Yen became stronger against US dollar by 2.45 yen compared with the day when Mitsubishi Materials previously revised its ingot selling price.

LME lead price turned to sharp upsurge in late August when some Chinese smelters were suspended from operations due to environmental pollution problems. LME price jumped by about 40% only in a half month and hit the yearly highest at US$ 2,447.5 on September 8.

However, Chinese domestic demand for lead was low and oversupply condition wasn’t solved. Market players supposed Chinese lead export may increase if LME lead price stays high. Then LME lead price dropped by 14% only in 3 trading days.