By the time Sorby Hills is developed, KBL should do very well...

By the time Sorby Hills is developed, KBL should do very well with the price of Pb set to rise further.

No blues for lead as demand grows
The lead market will continue in deficit this year too despite supply going up

Lead prices have risen about 2 per cent in the last one month in the international market on prospects of higher demand from car makers in the US, Europe and China.

Though the lead market moved into a deficit in 2013, till recently, prices were on a downward course. Between August last year and March, the commodity corrected 22 per cent.

However, prices may stand to gain from here as demand is expected to go up further.

The International Lead and Zinc Study Group (ILZSG) forecasts global demand for refined lead to increase 4.4 per cent to 11.73 million tonnes this year.

China, the world’s largest consumer of lead, accounting for over 45 per cent of global consumption, will be a major driver on the demand side this year as well. According to the ILZSG, Chinese demand for lead is expected to rise 7.4 per cent.

On the supply side, global refined lead production is expected to rise by 4.3 per cent in 2014 to 11.68 million tonnes.

A 5.7 per cent increase in production from Korea, the third largest producer in the world, and a 4.4 per cent production increase from Europe will contribute to an overall increase in global lead production.

But given that demand will also be increasing, the lead market will continue in deficit in 2014 too by 50,000 tonnes.

Indian demand for lead is on the rise. According to data from the World Bureau of Metal Statistics, refined lead production and consumption in India rose 6.7 per cent and 6 per cent, respectively, in 2013.