Lead falls by 0.7% as demand stays soft

A weak trend in base metals overseas also affected prices

Taking weak cues from the global market and sluggish domestic demand, lead fell 0.67% to Rs 110.80 per kg in futures trade today as speculators reduced positions.

At the Multi Commodity exchange, lead for delivery in September contracts was trading 75 paise, or 0.67%, down at Rs 110.80 per kg in a business turnover of 545 lots.

Metal prices for delivery in October also fell by 70 paise, or 0.62%, to Rs 111.95 per kg in 27 lots.

In the international market, lead lost 0.9% at the London Metal Exchange.

Market analysts said apart from slackened demand from battery-makers in the domestic spot market, a weak trend in base metals overseas amid renewed concerns over slowing growth in China, the biggest consumer, led to the fall in lead futures prices here.

Meanwhile, the Asian Development Bank has cut China's growth forecast and said the nation's declining appetite for energy, metals and other raw materials would hurt commodity-focussed export economies, including Mongolia and Indonesia.