Lead Prices Soar: Supply Shortage, Fund Buying Drive 10-Month High

• Battery metal lead prices surged, reaching near a 10-month high on MCX and China's SHFE, driven by strong bullish momentum.
• Aggressive buying by large funds and institutional investors on SHFE contributed significantly to the sustained rally.
• A severe supply shortage of lead concentrate and scrap batteries is the primary reason, limiting production for secondary smelters.
• Scrap suppliers in North China are hoarding stock, anticipating further price increases, which further tightens market availability.
• Lead is crucial for lead-acid batteries in automotive, UPS, and industrial sectors, ensuring stable demand despite supply issues.

Why It Matters: Lead prices are soaring due to severe supply shortages and strong fund buying, with future gains dependent on sustained demand.