Quoting Morgan Stanley estimates, a Bloomberg report suggests that the lead surplus will drop from 78,000 metric tons this year to 8,000 tons next year because of an increase of 9.5% by China.
According to a survey conducted by Bloomberg of producers, analysts and traders this could see prices rise by 19% to $2,500 a ton next year.
Stephen Briggs, an analyst at BNP Paribas, told Bloomberg “45% of demand is recession-proof.
“Demand for replacement batteries will continue at more or less the same rate whether there is a recession or not a recession.”
The International Lead and Zinc Group estimate that about 80% of lead is used in batteries.