Lead has been the best performer in the metals complex this year, gaining 130% to a 16-month high in September. A key driver has been supply disruptions culminating in China's suspension of some of its lead-smelting capacity after allegations of lead poisoning.
But concern over supply looks overdone for now, given that demand has slid and stocks in warehouses are at a six-year high. Despite that, the long-term outlook for lead is positive, says BNP Paribas Fortis. China is now "pivotal" to the global supply of refined lead; its share of production has risen to 40%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Review: Eden Roc Cap Cana – fun, sun and golf in the CaribbeanTravel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yetThe chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry
