Lead Can Extend Gain During Next Week
Lead prices are expected to extend gains in the next week.
Weakening Dollar and rising fundamental prospects will ensure the rise of the metal. China will be leading in the triggers for the rally.
The lead markets gained momentum after the news that China will shut down its smelters after hue and cry on lead poisoning of children in hunan province.
Hunan is the major producing region of lead in China.
The lead market was in deficit by 5 kilo tonnes in January 2010, which compares with a surplus of 14 kilo tonnes recorded in the first month of 2009, as per the latest report from World Bureau of Metal Statistics (WBMS).
Total stocks at the end of January were 5.5 kilo tonnes higher than at the end of 2009. No allowance is made in the consumption calculation for unreported stock changes.
Lead mine production was 409 kilo tonnes with Chinese output dominating the global supply. Refined production from both primary and secondary sources was 798.7 kilo tonnes.
Based on incomplete reporting, both production and demand appeared to be substantially improved on the depressed January 2009 data.
Chinese apparent consumption totaled 358 kilo tonnes of lead in January 2010, which was 80 kilo tonnes above the comparable period in 2009.
MCX benchmark Lead contract are at Rs 98.90 per kg, in the weekend session. The prices will look to test Rs 100 per kg, during next week