Lead Spot Price

The 2011 lead spot price is hovering around $1.1499 or so per pound. Evidence shows that lead has been used for at least 5,000 years. It is still being used in many industries today.

Trends and Issues Surrounding Lead

Since 2008, the price of lead has been on a downtrend. The decline started in late 2008 and continued until the year’s end. The most often cited reason is the lowering of demand. Figures from the London Metal Exchange show that cash prices fell by almost 30% in the last quarter of the year.

Overall however, use of lead in 2008 registered a 5% increase. The increase is largely due to transportation, telecommunications and IT growth in China.

The lead spot price is also affected by the total mine production. Notable increases have been done in Russia, China, Canada, India, Bolivia and Mexico.

Refined Lead

Refined lead production is expected to increase. The major players will be the UK, Australia, China and Kazakhstan. Statistics show that China and the US are the largest consumers and producers of refined lead on the planet.

It should be noted though, that China’s refined lead exports fell 20% due to tax issues. However, Chinese exports of lead based batteries have been on the increase.

Regulations

The Environmental Protection Agency (EPA) has come out with far more stringent rules concerning lead for ambient air quality standards. The implementation can be no later than 2017. It is not year clear how much effect it will have on the cost of lead.

Analysis and Prognosis

Some market analysts suggest a buy for lead. The trends shows that lead demanders are likely to grow in value. The reverse is true for the lead suppliers.

However, market watchers believe that this is applicable only for the short and medium term. For the long term, the prospects for lead are not promising. This is due to scarcity of good substitutes. The supply is also limited.

There are other problems with lead. It poses a threat to the environment. Second, the metal is very hard to dispose of. Lead will still be used in many industries and electronic equipment. But the problems associated with it may force industries to look for alternatives.

The lead spot price is very important for the short and medium term investor. Since the long term prognosis is not favorable, keep an eye on the price and the trends. That is how you can determine whether to buy or sell.