By Claudia Carpenter Dec. 3 (Bloomberg) -- Lead dropped to a two-year low in London after Ivernia Inc., the former supplier of 3 percent of world output, was cleared to resume a shipment from Australia. Ivernia will start removing 8,000 metric tons of stockpiled lead concentrate next month after Western Australia Premier Colin Barnett announced the approval, Toronto-based Ivernia said today. Lead inventories in warehouses monitored by the London Metal Exchange have dropped 5.5 percent this year as Ivernia was barred from shipping metal since last year. “If the material is converted to refined metal and put on warrant, yes it would turn the tide for lead and lead inventories would be increasing,” said Nick Moore, a commodity strategist at RBS Global Banking & Markets in London. Lead for delivery in three months fell $46, or 4.2 percent, to $1,043 a ton as of 11:34 a.m. in London, the lowest since July 2006. Ivernia’s exports were barred in March 2007 following an investigation into poisoning at Australia’s port of Esperance. Once the 8,000 tons is removed, Ivernia will work with the government on an area “clean up,” Ivernia’s director of investor relations Ann Candelario said in a phone interview from Toronto yesterday. The next priority would be to move 21,000 tons of stockpiled lead from the port of Fremantle, she said. The metal, mostly used in car batteries, has dropped 58 percent this year because of reduced automobile production. U.S. industry sales dropped for a 13th straight month in November, the longest slide in 17 years. Deliveries in Germany will probably drop to 2.9 million vehicles in 2009 from slightly less than 3.1 million this year, Matthias Wissman, president of the Frankfurt- based German carmakers association said today. ‘Worst Month’ “December is probably going to be the worst month for a whole series” of economic reports for manufacturing, Moore said. “You have Christmas and New Year’s closures, and certain manufacturers have announced extending those.” A typical car battery contains 7.5 kilograms (16.5 pounds) of the metal, according to the International Zinc and Lead Study Group. Lead inventories in warehouses monitored by the London bourse increased 1,125 tons, or 2.7 percent, to 42,975 tons, the biggest jump since June 17. Aluminum dropped as much as $35, or 2.1 percent, to $1,665 a ton, a four-year low, after stockpiles of the metal gained to the highest since Nov. 29, 1994. Inventories rose 12,750 tons to 1.83 million tons, the LME said today. It last traded at $1,665 a ton. Copper dropped $45 to $3,510 a ton. Freeport-McMoRan Copper & Gold Inc., the world’s second- largest copper producer, said it will reduce copper output 5 percent next year and 11 percent in 2010. Global production will outpace demand by 244,000 tons next year after 109,000 tons this year, Bloomsbury Minerals Economics Ltd. said in a report today. Zinc declined $17 to $1,152, nickel dropped $5 to $9,500 a ton and tin fell $105 to $11,850 a ton. To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net or ccarpenter2@bloomberg.net

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