Lead -- supply/demand outlook

As Japan goes--so goes the world. That was the title of a recent lead article in The Economist that soberly discussed the potential of much more severe global economic problems occurring, if rapid and coordinated efforts were not made to stabilize the economic situation in Asia in general, and in Japan in particular. During the first 6 months of last year, commodity markets reacted violently to the spreading economic problems in Asia. More recent currency and financial problems in Russia have exacerbated an already unpleasant situation. One commodity after another--including oil, many of the agricultural commodities, and each of the base metals--have dropped sharply in price. Many are now trading at multiyear lows. Until there is an overall improvement in the outlook for these regions, sentiment will likely continue to be negative, and metals prices will remain under pressure. That being said, lead has maintained its value better than many other commodities during these difficult times, finding support in relatively strong fundamentals. The author takes a closer look at those supply and demand fundamentals, beginning with consumption