NEW YORK (Commodity Online): Despite a looming economic slowdown, lead prices are expected to get support on the back of a steady battery demand. LME lead is currently trading around $2000/tonne levels.
At the LME, inventories hit a record 388,500 tonnes in October. However, considering that LME stockpiles are not of high quality and traders who require a high grade material will have to source at a premium.
-Lead is mostly resistant to recession as its demand is influenced by the weather. Almost 70% of the global lead consumption is from the automotive sector. During winter, when the lead batteries stop working, it requires a replacement.
"The picture from the lead producers is that they are struggling to keep up with demand. That's not to say demand is part going through the roof but it has seasonally ticked up from the summer and that has made the difference given that most producers were carrying low stocks going into the autumn”, Reuters quoted a CRU analyst.
