Vivek Bajaj

Presents

BASE
METALS:
LEAD
Know-It-All
 Vivek Bajaj Presents| Base Metals: Lead

What is Lead?
BASIC
HISTORY LOOK AND FEEL
PROPERTIES

Early Egyptians used the metal in Bluish, White Lustrous Metal Highly malleable and ductile
pottery glazes, soldering components,
piping and paints.
Soft and Dense Poor Conductor of Electricity

Egyptians used lead to make

Corrosion-Resistant
ornaments.

15th Century, it was used as a roofing

material for Cathedrals.
 Vivek Bajaj Presents| Base Metals: Lead
MCX

Futures & Options

Where can
one trade Equity

Lead in Stocks with base as Lead

India?
PHYSICALLY
 Vivek Bajaj Presents| Base Metals: Lead

EXPIRY
PRICE QUOTE
Last Calendar Day of the
Quotation Base Value - 1 Kg
Contract Expiry Month.

Contract
LOT SIZE
5 MT (5000 Kg) Size & DELIVERY UNITS
5 MT (5000 Kg)

Expiry
TICK SIZE & P/L PER TICK
MARGIN REQUIREMENT
Rs 0.05 (5 Paise per kg)
90K for 1 Lot (Approx)
P/L = 0.05*5000= Rs 250
Vivek Bajaj Presents| Base Metals: Lead

Uses of Lead
Vivek Bajaj Presents| Base Metals: Lead

Factors Affecting
Lead Prices

PRODUCTION CHINESE INVENTORY

DEMAND DATA
 Vivek Bajaj Presents| Base Metals: Lead

Factors Affecting
Lead Prices

GLOBAL DEMAND COMPETING HEALTH

OUTLOOK TECHNOLOGIES CONCERNS
 Vivek Bajaj Presents| Base Metals: Lead

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

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

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

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

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

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 Equity Stocks

Hindustan Zinc
NON-FERROUS METAL SECTOR,

Relationship METAL INDUSTRY

between Equity
and Lead Vedanta
NON-FERROUS METAL SECTOR,
METAL INDUSTRY
 Vivek Bajaj Presents| Base Metals: Lead Equity Stocks

Gravita India
NON-FERROUS METAL SECTOR,

Relationship METAL INDUSTRY

between Equity
and Lead Nile
NON-FERROUS METAL SECTOR,
METAL INDUSTRY
 Vivek Bajaj Presents| Base Metals: Lead Equity Stocks

Gravita's flagship
business is lead

Relationship recycling.

between Equity Vedanta owns the

world's largest

and Lead
underground zinc-
lead mine in India.

Hindustan Zinc is
world's 2nd largest
zinc-lead miner.
Vivek Bajaj Presents| Base Metals: Lead

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