Keeping a close eye on scrap metal prices helps sellers get the best value for their scrap. Given the fluctuations in global demand and supply dynamics, monitoring the cost of lead per pound is especially important in 2024 and beyond.
The Cost of Lead Per Pound: 2024 Trends
Understanding how these trends unfold can help industries and individuals make sound judgments about buying, selling, or holding lead as a resource.
Current Lead Market Overview
The spot price of lead, which reflects its market value, was 2002.74 USD/MT as of September 2024.
This represents a modest monthly increase of 0.18% compared to the previous month but a significant decline of 11.07% compared to the same time last year.
These fluctuations highlight the variety in lead pricing and the role of larger market forces in creating this volatility.
Year-to-date figures show a more bullish outlook, with a net gain of 50.50 USD/MT since January, or a 2.48% increase.
These patterns indicate that prices may rebound following greater drops in 2023, yet obstacles still remain in maintaining upward momentum.
Historical Context and Long-Term Trends
Lead prices peaked in October 2007 when they reached a high of 3989.00 USD/MT.
Since then, the market has had significant highs and lows caused by economic cycles, technical developments, and shifts in global commerce.
In 2023, lead averaged 2136 USD/MT, somewhat higher than the current market average for 2024 but still far below historical highs.
Forecasts for 2025 indicate an average price of 2100 USD/MT, indicating a rather steady future.
This forecast assumes lead prices are unlikely to spike but may remain stable due to continued industrial demand and supply blockades in major markets.
Regional Insights: Variations Across Markets
The cost of lead per pound is not consistent internationally and varies enormously from one location to another.
Asia
China influences lead prices across Asia. Supply cuts and limited exports have raised local prices.
Demand, however, varies regionally. While countries like Japan and South Korea have reported rising demand for lead for manufactures, countries like Thailand have declined.
Europe
European demand for lead is declining, mainly because of the lower automotive and battery demand.
In Bulgaria and Italy, production increased but was insufficient to offset sagging consumption. Thus, lead prices have remained relatively low in Europe.
North America
Lower demand for car batteries and slightly higher demand for lead in Mexico impacted North American lead prices.
Mexico’s growth helped, but not enough to completely counter the region’s downward momentum.
Lead’s Primary Uses and Their Impact on Demand
Lead uses are wide and varied, with about 80% of the world’s production going to battery manufacturing. This includes batteries for cars and backup power sources.
In addition to batteries, lead is used in tank linings to retain acidic liquids and for radiation shielding. It’s this versatility that makes it an invaluable material in many industries.
Changes in lead-consuming industries have considerable implications for lead demand and, hence, the cost of lead per pound.
For example, rising demand for EVs has increased the need for lithium-ion batteries, which could reduce demand for lead-acid batteries.
Meanwhile, industrial applications continue to deliver steady demand in industries that rely on specialized materials.
Supply Chain Dynamics and Leading Producers
Lead production is highly concentrated in certain regions: Australia, China, and the US. Other key players in the market are Canada, Mexico, Peru, and Sweden.
However, every region delivers its particular challenges and opportunities for sustaining or enhancing lead production.
China’s market share in both manufacturing and consumption largely affects prices across the world. Reduced exports from China have an indirect effect elsewhere, so manufacturers in Mexico and South Africa seek to fill the gap.
Recent Spot Lead Price Trends
Analyzing monthly spot prices published by YCharts reveals notable shifts in 2024:
- September: 2002.74 USD/MT
- August: 1999.11 USD/MT
- July: 2106.94 USD/MT
- June: 2147.10 USD/MT
- May: 2220.02 USD/MT
These figures indicate a steady decline from the year’s earlier months, although the slight uptick in September signifies the prospect of stabilization.
How Does the Cost of Lead Per Pound Compare to Other Commodities?
When compared to other metals, lead’s behavior in the commodities market is both similar and distinct.
Consider the differences between lead and three other commodities:
- Lead: -0.34% yearly change
- Zinc: +25.91% yearly change
- Aluminum: +18.60% yearly change
- Cobalt: -27.29% yearly change
Lead’s modest decline deviates sharply from the significant growth in zinc and aluminum, reflecting varying industry demand trends.
Global Lead Market Dynamics
A number of corresponding factors influence the present circumstances in the lead market.
Reduced supply from big manufacturers, variable regional demand, and evolving industrial requirements all play a role.
While some regions see localized price rises owing to supply restrictions, others are dealing with lessened demand in established sectors such as car production.
In all of this, China’s continuous market dominance cannot be understated.
As one of the major producers and users of lead, any changes in production levels or trade regulations have far-reaching consequences.
Similarly, Europe’s transition away from conventional lead-acid batteries contributes to price decline.
The Cost of Lead Per Pound: Takeaways for 2024 and Beyond
If you are in the lead industry, you’ll need to be informed about price and market developments now more than ever.
Buyers might see an advantage in the relatively low prices compared to 2023, but sellers have to be careful of when they sell to earn maximum profits.
Industries that depend on lead must keep a close eye on regional developments for any changes in supply and demand.
Going into 2025 and beyond, the overall market looks to become relatively stable with only small variances anticipated.
This environment creates an ideal environment for strategic planning, be it when procuring leads for manufacturing or owning a piece of the pie.
If you’re eager to recycle scrap lead in Florida, contact Scrap Gators. As an industry leader in scrap metal recycling, the team at Scrap Gators is happy to educate its clientele on related topics while also offering scrap metal removal and other services.
