Treading near November 2011 levels, Lead inventories are expected to hit prices on wrong side. The heavy rise in lead inventories is a worry for already weak market structure. Lead inventories in London Metal Exchange are at 381750 as of 13 Feb 2012, these are also November 2011 levels when the stockpiles were hovering between 383000-388000 tons. In 2012, rise in inventories has been 8.5% from 351725 tons on 3 Jan 2012. Shanghai inventories have increased by 22% so far in 2012. Meanwhile, on-warrants in Shanghai reached 21568 tons on 13 Feb 2012 from 16525 tons on 4 Jan 2012, an indicator of lower offtake in the region. Lead prices are trading at $ 2154 per ton, a slump can bring them back to $ 2100-2080 per ton.
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