MUMBAI (Commodity Online): Lead futures at Multi-Commodity Exchange of India (MCX) continue to show weak trends on falling domestic spot market demand and record high stock piles in London Metal Exchange ware houses.
In morning trade, MCX Lead September contract has gained marginally at Rs 112.40 as against Rs 111.80 at open. September lead futures fell 1.35% to Rs 113.20 last week.
Lead is primarily used in batteries and electronics industry. MCX September lead has support at 110.05, 111.20 and is in sideways trend,Angel Commodities said in a report.
A Bloomberg report said that lead inventories monitored by the London Metal Exchange climbed the most in a month to the highest level in more than 16 years.
Stockpiles rose 5,075 tonnes or 1.6% to 327,750 tons daily LME figures showed. The increase, the biggest since August 16 lifted inventories to the highest level since January 31 1995. Inventories in Singapore warehouses increased 3,250 tonnes to 45,225 tonnes the most metal since June 30.
According to RBS Global Banking & Markets global reported Lead inventories will likely fall to the equivalent of 1.5 weeks of consumption by the end of 2015 from an expected 3.1 weeks this year. Analysts including Mr Nikos Kavalis in London said in a report that demand will exceed supply by 50,000 tonnes to 150,000 tonnes between 2013 and 2015.
