Lead prices have had huge fluctuations lately, but lead has pulled out to hold its value tight this year. Last week, the metal hit an 8-month rise.
All base metals are up since the year started. Metals such as tin and zinc have made significant gains so far this year while aluminum, copper and nickel are also making some progress.
Although lead nose-dived at the beginning of January, prices have made a nice comeback since. But price rallies like this have been usual in previous years only to then be erased as prices trend lower. It will be interesting to see if lead prices can hold above these levels.
January data showed that total vehicle sales in China rose 7.7% from a year earlier. Although the growth looks good, it might shrink in the coming months as China’s weak economic situation could hurt consumer confidence. In the US, auto sales were mixed in January. The number of cars sold was flat compared to the same month last year, although analysts attribute lower sales to fewer selling days this January and a particularly cold month in the populous northeast.
Although these numbers are relevant, lead’s resilience this year is mostly attributed to a weaker dollar. Not only lead, but most base metals have made some upside progress over the past few weeks after suffering significant declines in 2015:
- Aluminum just hit a four-month high
- Copper is at a four-month high
- Zinc is at a four-month high
- Tin just hit an eleven-month high