12 March 2014

The increase in the deficit of lead continues

The extraction of many non-ferrous metals today is too costly and inefficient, which forces owners of the relevant enterprises to curtail production facilities and reduce the production of a certain type of raw materials. However, such a scheme is completely inconsistent with the situation on the lead market. On the contrary, today lead is quite in demand and is growing in price. On the relevant market segment there is a constant shortage of important technological raw materials. As recently as last year, the increase in the consumption of material amounted to almost three hundred thousand tons, while the production capacity for its production decreased by 1%. According to the analytical agencies of the non-ferrous metals industry, this situation will continue. After all, the demand for such raw materials in 2014 will increase by another five percent. The lead market will also behave in the future in 2015. If now the deficit of lead does not take menacing values ​​and is not very significant, in the near future the shortage of lead raw materials will gradually increase, leading to a serious deficit.

In order to correct the problem in time it will be necessary to increase the extraction of valuable material. Although this fact is under big question. After all, more often than not so necessary production is not a separate type of a commodity unit, and is present as an additional component at manufacturing of various kinds of the metallurgical goods. Leading companies in the pure form of lead in the sphere of non-ferrous metallurgy are not too hasty, because such actions determine the presence of large problems in the environmental sphere. Lead compounds are very harmful to human health. It is almost impossible to make such a production absolutely safe. In addition, the extraction of lead concentrate is very laborious and costly, in connection with which to expand the existing production will require a fairly large capital investment and a large time interval. Given such characteristics, it is almost impossible to improve the situation on the lead market or radically change it at the present time. Hence, the deficit of material over the next few years will constantly grow and lead to a gradual increase in the cost of the material. The perplexities of the lead market and the direction of its development are occupied by the minds of many specialists, but a worthy solution to the problem in today's realities has not been found so far.

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