Traders remained betting on lead on Monday after some favorable response from the European summit that was expected to deliver less. Three month forwards of Lead went on to test a one week high on Monday and was seen trading at $ 1848 per tonne after settling at $ 1811 per tonne on Friday.
Global supply of lead exceeded demand by 22000 tonnes in January-April 2012. The total metal usage was 3.24 million tonnes in January-April 2012 compared to 3.38 million tonnes in January-April 2011. Production of refined lead metal was 3.26 million tonnes in January-April 2012 compared to 3.46 million tonnes in January-April 2011.
Indian Lead futures were seen trading at Rs 104 per kg, responding from the gains in LME. Battery producers are expected to do good this quarter due to deficit of rains that might have cooled the soaring temperatures and power crisis in most parts of the country. Lead is a major component of battery manufacturing. Power shortages imbibe battery usage as an alternative.
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