Lead demand to rise by 15 per cent

"The battery industry consumes nearly 70 per cent of the total lead output in the country. As consumption by the three sectors is growing, lead demand is also bound to grow by at least 15 per cent," said L Pugazhenthy, president, India Lead Zinc Development Association (ILZDA), which promotes consumption of lead and zinc in India.

Lead, while available as ore along with zinc, is also obtained as a by-product during zinc processing.

Major virgin-lead producers Hindustan Zinc and Binani Zinc meet about 30 per cent of India's total requirement of 250,000 tonnes. Imports and recycling provide the remaining 70 per cent. The metal does not lose its physical or chemical properties in recycling.

According to the latest forecast by Portugal-based International Lead & Zinc Study Group (ILZSG), global lead consumption may increase 3.9 per cent in 2008 to 8.57 million tonnes, driven by strong growth in China (12.7 per cent) as well as moderate growth in India, Japan and Korea.

In contrast, demand in Europe is anticipated to decline by 2 per cent, and it is expected to be flat in the United States.

The metal has hit a low because of global economic slowdown and is hovering around $1780 per tonne in London. The prices may revert to $2,250 in the near future.

BNP Paribas had earlier cut its forecast for average lead prices in 2008 by 8 per cent on expectations that supply would exceed demand.