What Factors Influence the Market Price of Lead?


Quick Answer

The factors that influence the market price of lead include government policy, exchange rates and aggregate global economic growth, according to the Multi Commodity Exchange of India, or MCX. Inflation, unexpected mine closures and industrial restructuring also affect the market price of lead.

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Full Answer

Additional factors that impact the price of lead include economic downturns and upswings, industrial growth or decline, and supply disruptions due to events such as strikes, accidents, armed conflict and natural disasters, explains MCX. New industrial processes, such as more efficient production techniques or recycling methods, and government actions, such as decreasing tax levels or introducing import quotas, can also impact the market price of lead.

Investor expectations have a bearing on the price of the metal as well, notes FastMarkets. For example, on March 18, 2015, the price of lead rose after the Federal Open Market Committee released a March report that investors in the industry perceived to be positive. The actions of speculators also affect the price of lead. For instance, the price rally that started on March 18, 2015, is expected to persist as speculators change their tactics.

Cessation of traditional uses and new ways of using the metal also have an impact on lead prices, explains MCX. For instance, lead was traditionally used for soldering, plumbing and modifying the properties of petrol, notes the London Metal Exchange. However, as of April 2015, about 80 percent of global lead production goes toward the manufacture of batteries.

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