Lead Rises Close to Record as Stockpiles Dwindle; Copper Gains By Chanyaporn Chanjaroen
Sept. 24 (Bloomberg) -- Lead rose close to a record in London as stockpiles fell to a 17-year low. Copper and nickel also advanced.
Inventories of lead tracked by the London Metal Exchange dropped 150 metric tons, or 0.7 percent, to 21,050 tons, the lowest since March 16, 1990. Car-battery producers, the largest users of the metal, are stocking up before the peak demand season in winter, when cars are more likely to need replacements.
``Lead supply and demand fundamentals are very strong,'' Gayle Berry, a metals analyst at Barclays Capital in London, said today by phone. Barclays is among 12 companies that trade on the LME floor. The metal for immediate delivery will rise to $3,600 a ton in one month, according to the bank's forecast.
Lead for delivery in three months rose $134 a ton, or 4 percent, to $3,493 a ton as of 9:39 a.m. local time. It traded at a record $3,500 a ton July 23. The contract for immediate delivery closed at $3,434 a ton on Sept. 21.
The metal has more than doubled this year, posting the largest gain among all LME-traded metals, after Ivernia Inc., which produces about 3 percent of world mine output, stopped exports from its Magellan mine in Australia because of an investigation into lead poisoning. Ivernia's shipments through the port of Esperance were suspended March 12 after high lead levels were found in some residents' blood.
Demand beat supply by 27,000 tons in the first seven months, according to the International Lead and Zinc Study Group.
Nickel inventories jumped 768 tons, or 2.6 percent, to 30,660 tons, the LME said today, the highest since April 6.
Zinc inventories fell 2,025 tons, or 3.1 percent, to 64,150 tons, posting the biggest daily drop since May 9, according to the exchange data.
Nickel gained $700, or 2.2 percent, to $33,000 a ton, copper added $105, or 1.3 percent, to $7,990 and zinc increased $33.50, or 1.2 percent, to $2,912 a ton. Aluminum fell $3 to $2,405.
To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net
Last Updated: September 24, 2007 05:15 EDT
