Sunday, 27 January 2013

MCX Lead

Major Characteristics:

  • Lead is usually found in association with zinc, silver, as well as copper ores.
  • It is one of our planet's most sustainable and recyclable commodities. It can be re-melted any number of times without ever losing any of its properties.
  • The lead production process consumes less energy as compared to the production of any other metal.
Demand and Supply Scenario:
  • In 2010, world lead mine production was 6.3% higher than in 2009. This was mainly due to rises in China, Mexico and the Russian Federation that more than offset decreases in Ireland, Peru and the United States.
  • Global refined lead production over 2010 was 9.311 million MT, up from 8.802 million MT in 2009.
  • Global refined lead consumption had risen to 9.329 million MT in 2010, up from 8.761 million MT in 2009
Global Scenario:
  • The world's reserve base of lead is estimated at 170 MT. Australia leads with 35% of the world reserve base of lead, followed by China (21%), USA (11%) and Kazakhstan (4%).
  • Major refined lead producing countries are China, USA and Europe, while major refined lead consuming countries are China, USA and India.
  • Major refined lead exporting countries are Australia, Germany and Canada, while major refined lead importing countries are USA, United Kingdom and India.
Indian Scenario:
  • In 2009, refined lead production was around 207,000 MT, up from 165,000 MT in 2008.
  • India imported 125,000 MT of lead in 2009, an increase of 20% compared with lead imports in 2008.
  • India's refined lead consumption in 2009 increased by 3% y-o-y to 187,000 MT, up from 181,000 MT in 2008.
Factors Influencing the Market:
  • Lead prices in India are fixed on the basis of the rates that rule on the International spot market, and Rupee and US Dollar exchange rates.
  • Economic events such as national industrial growth, global financial crisis, recession, and inflation affect metal prices.
  • Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring, all affect metal prices.
  • Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect supply by regulating (restricting or encouraging) material flow.
  • Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.

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