Stocks of refined lead monitored by the Shanghai Futures Exchange dived 57 percent from last week, hitting a record low, data from the exchange showed on Friday. Reduced availability of lead stocks raised fears of supply shortage for deliveries of the front-month contract, February, pushing up the premium of the contract from the most active contract to the highest level since September 2015.
Stocks of refined lead were reported at new record low of 4,052 tonnes, one-twelfth of 48,852 tonnes on January 30 last year, and the Friday stocks were just about 3 percent of the record 140,750 tonnes seen in March 2013. The stocks hit a record low on January 8 and continued to fall since. Offers to sell spot refined lead had fallen this week on expectations of higher prices, traders said, while Chinese producers were expected to reduce supply in the coming 2-3 weeks to the spot market due to the Lunar New Year holidays.
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