Lead is used in building construction, lead-acid batteries, bullets and shot, weights, and is part of solder, pewter, and fusible alloys.
This metal is highly resistant to corrosion, hence it is extensively used in building construction, e.g., external coverings of roofing joints.
Lead rose to the highest in three weeks in London on speculation demand improved in China, the world’s largest consumer and producer of Lead. Stockpiles in London Metal Exchange warehouses have fallen 18% since end of June.
This year lead price had reached the peak of 00 before falling 50% to 00. 00 is a long term support level as shown on the daily chart.
Lead was the worst performer on the LME this year as China’s output surged and on expectation that a slowing global economy will lower car production and sales, reducing demand in China.
Technically double-bottom is forming at around 1500 – 2300 level. If this double-bottom is fully formed, lead has the potential to rise to 2800.
Lead inventory has risen to around 900,000 mt before falling. Lead price generally moves in inversed direction with its inventory level. With lead inventory falling, this will create upward pressure for lead price.
Lead is a poisonous metal that can damage nervous connections (especially in young children) and cause blood and brain disorders. Due to its poisonous nature, mining of lead has always been difficult, hence new supply of lead has been growing very slowly.
Today lead price is trading at 15, we would see much higher price over the next few months.
Currently I’m working as a trader in a hedge fund. Previously I was working as a commodity specialist in a bank.
Aspires to be a fund manager. In 2007, I had participated in a 1 year stock-pick competition organized by Zacks.com in America. At the end of the competition, I was ranked 407th out of 27,700 participants, hence this makes me top 1.47% of the competition. I had achieved 32.67% return on the competition portfolio, for the same period S&P was only up 6.99%, and Dow Jones was only up 4.16%, hence I had outperformed the broad market by a wide margin.
