Base metals on the London Metal Exchange were mixed at the close of trading on Tuesday May 22, with lead, copper and nickel prices rallying higher amid struggling performances elsewhere in the complex.
Edging 2.6% higher, lead's three-month is leading the complex's gains, breaking above the resistance level at $2,400 per tonne.The metal is finding support from the open arbitrage between the LME and SHFE, in addition to concerns over Iranian supply disruptions. Clampdowns on secondary smelters in China are also contributing to the metal's sharp price rise, with environmental concerns weighing on production. Lead's cash/three-month spread is currently in a contango of $7.50 per tonne. "Price sentiment has strengthened as uncertainties relating to Iranian supplies are compounding an already tight fundamental backdrop," James Moore, analyst at Metal Bulletin, said. "We expect positive price sentiment to continue for the moment, although they may not have sufficient momentum to...