Lead price move­ment dur­ing last one-year

Dalal Street Investment Journal - - SPECIAL REPORT -

Lead prices have seen a de­cent up­move so far this year, post­ing a gain of 18 per cent on the Lon­don Metal Ex­change so far as sup­ply con­straints ex­ac­er­bated on ac­count of be­cause of China’s en­vi­ron­men­tal crack­down, solid de­mand and fall­ing in­ven­to­ries in Shang­hai. China rep­re­sented around 40 per cent of world­wide lead de­mand, as­sessed at around 12 mil­lion tonnes this year. The re­ports as­sess that the lead mar­ket will see lit­tle short­fall this year and the next. The Na­tional Bu­reau of

Sta­tis­tics re­cently said China’s lead yield was the low­est since Novem­ber 2016. Also, China’s de­ci­sion to boy­cott im­ports of sev­eral more com­modi­ties from North Korea (in Au­gust) im­plies about 10 per cent of its uni­ver­sal lead mine sup­ply will be blocked.

Cer­tainly, things are look­ing bet­ter for lead and this metal may pos­si­bly have a bright fu­ture in the next few years as sup­ply con­tin­ues to de­crease and de­mand picks up, sup­ported by Chi­nese con­sump­tion and world­wide bat­tery de­mand.

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