LME Lead Inventory Expands by 19% with China’s Release

Electrolytic lead inventory at warehouses designated by London Metal Exchange (LME) jumped by 50,225 tonnes or 19% last week and hit 264,350 tonnes on January 19th, the highest in 16 years. The inventory increased by 23,100 tonnes in Singapore, by 18,125 tonnes in Kuala Lumpur, by 5,550 tonnes in Johore and by 2,475 tonnes in Baltimore.

Japanese trader source analyzed LME lead inventory expanded because lead listing on Shanghai Futures Exchange (SHFE) was extended to June 2011 from planned February 2011. Chinese traders seem to have increased their lead inventories with an expectation for market price up as of timing of listing on SHFE. However, they were likely to release the inventories since the listing was extended.

It was locally reported that 8,000-tonne lead was moved from Shanghai bonded warehouse to LME warehouse. There is also unofficial information about lead shipment from Tianjin and Guangzhou.