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Lead To Average US$2,550/tonne In 2011

February 2011 | Commodities Forecast

Three-month lead is currently trading at US$2,631/tonne and we forecast lead to trade between the US$2,400-2,700/tonne range over the coming months. However, we anticipate a break above the US$2,700/tonne level at some point this year, as the broad-based uptrend in commodity markets should help lift lead prices. That said, the lead market remains oversupplied, and inventories are rising at the LME, which suggests that gains above the US$2,700/tonne level could be somewhat capped. Moreover, in the event of a broad-based selloff in the metals complex, lead would be susceptible to a sharp correction given its relatively unsupportive fundamentals.

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