2. Vivek Bajaj Presents| Base Metals: Lead
What is Lead?
HISTORY
Early Egyptians used the metal in
pottery glazes, soldering components,
piping and paints.
Egyptians used lead to make
ornaments.
15th Century, it was used as a roofing
material for Cathedrals.
Bluish, White Lustrous Metal
Soft and Dense
Highly malleable and ductile
Poor Conductor of Electricity
Corrosion-Resistant
LOOK AND FEEL
BASIC
PROPERTIES
4. Contract
Size &
Expiry
PRICE QUOTE
Quotation Base Value - 1 Kg
LOT SIZE
5 MT (5000 Kg)
TICK SIZE & P/L PER TICK
Rs 0.05 (5 Paise per kg)
P/L = 0.05*5000= Rs 250
EXPIRY
Last Calendar Day of the
Contract Expiry Month.
MARGIN REQUIREMENT
90K for 1 Lot (Approx)
DELIVERY UNITS
5 MT (5000 Kg)
Vivek Bajaj Presents| Base Metals: Lead
8. Production
Primary Production (Mining-Ore, Smelting,
Refining) and Secondary Production
(Recycling Old lead items to lead) are the 2
ways to produce Lead.
China accounts for more than 50% of lead
production. It is 5 times the next producer
which is Australia.
Top Producers are China, Australia, USA, Peru,
Mexico, etc.
Vivek Bajaj Presents| Base Metals: Lead
9. Chinese Demand
1)China accounts for more than 40% global
demand of lead.
2)China is the biggest driver of its price.
Strength or Weakness in Chinese GDP Data
moves the prices of Lead.
3)Battery and Power Storage Industry affect
the demand for this metal.
4) Chinese power consumption data is of
importance.
Vivek Bajaj Presents| Base Metals: Lead
10. Inventory Data
The London Metal Exchange (LME) keeps
track of global inventory levels for Lead.
Shortage or surplus of stock levels affect Lead
prices globally like they increase when stock is
low, and reduce when stock is high.
Chinese inventory levels (SHFE) need close
monitoring as they have a substantial impact.
Vivek Bajaj Presents| Base Metals: Lead
11. Global Demand Outlook
Battery Industry commands 85% of total lead demand.
With lead-acid batteries finding application in electric
and hybrid vehicles, demand is expected to rise.
Government data suggests energy demand to double in
the next decade allowing power storage applications
for lead to flourish.
Vivek Bajaj Presents| Base Metals: Lead
12. Competing
Technologies
Lithium-ion batteries vs Lead-Acid Batteries.
The former is an expected replacement of lead
batteries in automobiles.
Both have pros and cons. Lead works better
for high power vehicles. It is also cheaper
compared to the lithium batteries.
Any advancement in an alternate technology
or use of elements could hurt lead prices.
Vivek Bajaj Presents| Base Metals: Lead
13. Health Concerns
Health studies say chronic lead exposure can
be toxic to humans.
Lead has been removed from products such
as paints, gasolines, drinking water pipes, etc.
as a follow up.
Consumers and producers may switch to
alternatives as more and more is revealed.
Vivek Bajaj Presents| Base Metals: Lead
14. Equity Stocks
Relationship
between Equity
and Lead
Hindustan Zinc
NON-FERROUS METAL SECTOR,
METAL INDUSTRY
Vedanta
NON-FERROUS METAL SECTOR,
METAL INDUSTRY
Vivek Bajaj Presents| Base Metals: Lead
15. Equity Stocks
Relationship
between Equity
and Lead
Gravita India
NON-FERROUS METAL SECTOR,
METAL INDUSTRY
Nile
NON-FERROUS METAL SECTOR,
METAL INDUSTRY
Vivek Bajaj Presents| Base Metals: Lead
16. Equity Stocks
Relationship
between Equity
and Lead
Gravita's flagship
business is lead
recycling.
Vedanta owns the
world's largest
underground zinc-
lead mine in India.
Hindustan Zinc is
world's 2nd largest
zinc-lead miner.
Vivek Bajaj Presents| Base Metals: Lead
