Base metals on the London Metal Exchange were predominantly higher at the close of trading on Monday May 21, with zinc and lead breaking through recent support and resisting the US dollar's six-month high.
Lead's three-month price climbed 3.3% to break past the $2,400-per-tonne mark, with its cash/three-month spread currently in a contango of $12.25 per tonne. The metal continued to find support from the recent open arbitrage window between the LME and SHFE, with its price trading around $2,350 per tonne across May. "In the very short-term, LME lead prices should continue to rebound higher amid the improving technical configuration and increased demand from China," Andy Farida, analyst at Metal Bulletin, said. "That said, upside momentum could remain limited if the Chinese import arbitrage proves short-lived," he added. Sister-metal zinc also found support during the afternoon, returning to over $3,100 per tonne.Sentiment surrounding zinc continues to remain positive, with the International Lead and Zinc Study Group forecasting up to 1 million tonnes per year of...