Lead Market Update (May 16, 2012)

Lead fell 1.35 percent, $2,008 US per tonne, on the London Metal Exchange (LME) over the past week. The metal declined along with other commodities, largely on fears of a deepening recession in Europe.

These concerns, along with worries about slowing demand in China, could hold back base metal prices in the short term, Nicholas Snowdon, a commodities trader with Barclays Capital in New York, told Reuters.

“But ultimately,” he said, “we are still in a phase where this tension between current softness in Chinese demand and the expectation of an ultimate improvement in conditions there in the second half of the year is keeping us in a relatively range-bound market for the majority of base metal prices.”

Looking longer term, according to an April 30 report from the International Lead and Zinc Study Group, Chinese lead demand is expected to rise 7.3 percent in 2012, and the country’s production is expected to reach 2.54 million tonnes, or 52 percent of global output.

Demand for lead-acid batteries is also improving in China as more battery makers reopen their facilities. The Chinese government closed 90 percent of them when it brought in stricter environmental measures in 2011.

Get the Latest Lead Investing Stock Information

Get the latest information about companies associated with Lead Investing delivered directly to your inbox.


By selecting company or companies above, you are giving consent to receive email from those companies. And remember you can unsubscribe at any time.

Investing Opportunity: Using LME Prices and Base Metals News 

Get Our Expert Guide to Base Metals Investing FREE!

  Download this FREE Special Report, Investing Opportunity: Using LME Prices and Base Metals News.

Leave a Reply