Lead

GLOBAL LEAD INDUSTRY SCENARIO

Strengthening prices

The LME lead price ended FY2025 at US$ 2,002 per tonne, a 2% increase over the previous fiscal year’s closing price of US$ 1,965 per tonne. The average lead price for FY2025 stood at US$ 2,046 per tonne, slightly lower than US$ 2,122 per tonne as recorded in FY2024.

Production outpaces consumption

Global lead demand remained moderate, shaped by stabilising inflation trends, with the International Monetary Fund projecting inflation to ease to 4% in CY2025, improving real incomes and consumption of lead-intensive goods. However, a persistent high-interest rate regime by central banks like the Fed and the European Central Bank dampened investment in lead-heavy sectors such as automotive. Encouraging momentum in industrial production indicators across key regions – China’s manufacturing expanding at 5% YoY, US capacity utilisation stabilising at 78%, and Europe’s factory activity recovering after a mild slowdown, supported lead consumption for batteries, infrastructure, and electronics.

Overall, the global refined lead production decreased by 2% to 14,205 kt in CY2024, while refined lead consumption dropped by 0.7% to 14,151 kt, resulting in a market surplus of 54 kt.

INDIA LEAD INDUSTRY SCENARIO

Demand growth across key sectors

India’s primary lead demand grew by 6-7% in FY2025, supported by automotive, battery, and infrastructure expansion. The industry is witnessing an accelerated shift toward the secondary (recycled) market, which now accounts for over 60% of supply, given its cost advantage over primary metal. The removal of customs duties on lead scrap in the FY2026 budget is further driving investment in formal recycling infrastructure.

Evolving battery mix

Lithium-ion battery adoption continued to rise, with the sector projected to grow at a compounded 15%+ through 2030, impacting traditional lead-acid markets. Strong domestic sales growth of 7.3% in the automobile industry, driven by higher vehicle production across all segments, continued to support primary lead demand, particularly for starter batteries and corrosion-resistant coatings. Additionally, the broad battery sector also expanded by 6-8% YoY, supported by automotive replacements, telecom backup systems, and solar-off-grid installations.

LEAD AS A CRITICAL METAL

Lead is critical for energy systems, primarily used in lead-acid batteries that power vehicles, backup systems, and stabilise electric grids. Its recyclability of over 95% makes it highly sustainable. Lead-based batteries ensure grid reliability, support renewable energy integration, and provide cost-effective, large-scale storage essential for global energy security. Apart from batteries, lead also has a significant demand from housing, home appliances, and infrastructure sectors.

HINDUSTAN ZINC: LEAD BUSINESS OVERVIEW

Hindustan Zinc is India’s leading lead producer, which was further strengthened by increasing primary market share to 74% in FY2025, up from 64% in FY2024. We sold 166 kt domestically, with 59 kt in exports, further expanding our domestic market penetration. The production was focused on 99.99% purity lead ingots, registered with the London Metal Exchange, with efforts underway to optimise sales mix toward 100% domestic consumption by securing new customers and enhancing lead applications.

OUTLOOK

Global refined lead supply is projected to reach 14,486 kt in CY2025, growing 2%, while consumption is expected to rise 1.5% to 14,369 kt, indicating a cautious recovery demand. The lead consumption landscape in India continues to evolve, with a 140% YoY surge in electric vehicle (EV) production, signalling a gradual shift away from traditional internal combustion engine vehicles. This transition is expected to moderate long-term demand for lead-acid batteries.

However, the government policy continues to provide adequate support. The indirect tax reforms introduced in the Union Budget FY2026 to support domestic manufacturing and exports are poised to support lead usage.