InvestorQ : Can you explain how the price of lead is determined in the Indian market?
sara Kunju made post

Can you explain how the price of lead is determined in the Indian market?

Answer
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priya Shah answered.
2 years ago


Consider the price chart of lead at the LME over the last 10 years.

Global prices, that drive the price of lead in India, have been fairly stable in a range since 2010. In fact, if you leave out the volatility of the financial crisis in 2008 and 2009, the price of lead has been fairly stable since 2010 and it has also not seen extreme reactions to the economic slowdown on the downside or to the Trump trade on the upside. The supply of lead is largely influenced by its ability to be recycled and that acts as a major ceiling and prevents prices from going up very sharply. According to the International Lead Association (ILA), nearly 80% of the supply of lead in the US and nearly 60% of the supply of lead in Europe comes from recycled resources. At the global level, nearly 50% of the lead comes from mines and the balance 50% comes from recycled resources. China is the world’s largest producer of lead with a 50% market share and also accounts for 45% of the lead demand in the world. One of the reasons for the price stability in lead is also because the demand and supply of lead have been fairly at equilibrium since 2010.