Lead gains for third straight week as supply outage rubs out stockpiles

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Lead gains for third straight week as supply outage rubs out stockpiles

On Friday, the 26th of July 2019, price of Lead, the grey-metallic heavy metal used widely in car batteries and high-tech facilities to protect radiation, posted gains for third straight week in a row, as a flurry of production outages on facilities across the globe and a pollution crackdown at smelters in China had been squeezing supplies and eroding stockpiles, while Lead stocks in London Metal Exchange warehouses was faltered to a decade-low figure.

Nonetheless, despite a weekly gain on massive supply cut, benchmark lead price on London Metal Exchange witnessed a downswing of 2.3 percent on Friday (July 26th) to round off the day at $2,065 per ton, while a majority of industrial metal future prices seemed to be death-crossed in context of a declining demand on contracting manufacturing activity almost all over the globe.

However, despite a dwindling of 2.3 percent on Friday (July 26th), benchmark lead future prices added just a notch shy of 1 percent this week, while the valuable metal for battery industry soared more than 15 percent over the past couple of months after falling to a three-year-low figure on May this year.

Adding that a series of smelter crackdown in China, the world’s largest producer of lead and accountable for 43.33 percent of entire lead requirement across the globe, had caused a mass-scale supply disruption and evaporation of lead stockpiles, a BMO analyst Kash Kamal had been quoted saying that long-term price projections would likely to support a robust demand outlook for lead amid heightening optimism over e-vehicle investments and benchmark lead future prices should reside around $2,000 per ton mark.