LME lead inventories remain at multi-year highs with Reuters describing a 'stocks carousel' pattern. Metal moves between warehouse locations without being consumed, indicating genuine structural oversupply.
The contango structure with cash at ~$15/t discount to 3-month incentivizes storage rather than immediate delivery.
About 32% of LME warrants are cancelled, suggesting logistical churn rather than genuine demand-driven drawdown.
Lead's by-product nature means output continues regardless of its own market balance, sustaining the oversupply.
Buyers should resist locking multi-year agreements at premiums not reflecting the well-supplied market.
Buyers should resist locking multi-year agreements at premiums not reflecting the well-supplied market.