Asia lead consumption surges

The consumption of the non-ferrous metal lead has remained strong during the period January to July 2007 on a y-o-y basis and that's despite sharply higher prices of this metal on the LME.

For instance, according to the Portugal-based International Lead and Zinc Study Group, the consumption of lead in the Asian region (including India) was 2, 389,000 tonnes during January to July 2007 compared with 2,137, 000 tonnes in the corresponding period of the previous year.

Amongst domestic players, Hindustan Zinc is a large supplier. The average price of lead during January to July 2007 was $2132.35 tonnes on the LME as compared to $1152.1 per tonne a year earlier. This non-ferrous metal is used in industries such as storage batteries, dry cells, pigments and paints and chemicals.

Meanwhile, the global consumption of this metal was 4,828,000 tonnes during January to July 2007 as compared to 4,642,000 tonnes a year earlier, and that was largely due to surging demand from user industries in the Asian region, highlighted the global industry body.

The consumption of this metal in Americas ( North and South America) fell on a y-o-y basis during the period January to July 2007.

Earlier, the London-based Natixis Commodity Markets had forecast that lead would be in a deficit of 60,000 tonnes in CY07 compared to their previous estimate of a 35,000 tonnes shortfall. That is despite the current volatility witnessed on the global commodity markets due to sub-prime problems.