Global lead strategic planning outlook Q2 2022

Lead markets have shown their resilience since the first onset of coronavirus lockdowns in 2020 and the precipitous fall in global economic activity. Demand already surpassed pre-pandemic levels last year, although that rebound is already fading with markets returning towards normal levels. North American and European demand reached extraordinary levels over the past two years, when the need for particularly replacement auto batteries outstripped the ability of Covid-constrained supply to meet this challenge. The industry is stabilising and converging again on the pre-Covid trajectory, which includes a softening rate of growth in China. Superimposed on this is the detrimental effect of the long-term fallout from the Russian invasion of Ukraine, and the consequential economic sanctions against Russia having global repercussions. In the coming years, primary lead supply will tighten as mine output struggles to gain any momentum. But secondary production is capable of filling this gap.