Worldwide Shortage of Lead Coming as Prices Rise
Lead is at a year-low currently, but poised to rise on global shortages. Demand for lead has gone up every year for the past 5 years as the metal is a crucial part of industrial batteries.
Wolrdwide stockpiles dropped 7.6% since October 2011 when lead prices reaches an all-time high. Analysts estimate that prices will rise 13% before the end of the year to about $2,273 per ton as supply struggled to meet demand.
Demand is coming largely from the industrial sector and the high-tech markets as a major component of batteries. However demand is outpacing supply by 150,000 tons per year. This gap will rise further as a major Canadian mine run by Xstrata (XTA) will close next year as its deposits are exhaused. The company will focus on new, more profitable mines.
Currently only China is developing new lead mines.
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