Network Metals LLC

Today there are several reports out spelling out the details of something that we have been hearing more of lately: private metal stockpiles in China, in this instance up to 100,000 metric tons of lead, could potentially hit the market this month. Lead production in China, which produces up to 1/3 of all global lead production, is up 20% this year on current higher prices. Under normal circumstances stockpiles of lead would signal a bearish picture, but with the shift of auto production from West to East we are not yet sure this is a bad sign. Like so much of the manufacturing base in the US, we have yet to see what this country, or China for that matter, will look like with an approximate 5 million car “location” shift in auto manufacturing.