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Tuesday, May 20, 2008

LEAD UPDATES

MAY 20 TH TUESDAY

SHORT TERM : SIDEWAYS :TARGET RS 124 TO 126.40


LONG TERM : BULLISH : TARGET RS 138

Lead Declines to Lowest in a Year as Stockpiles Grow 42 Percent


Lead fell to the lowest in almost a year in London as a 42 percent increase in stockpiles in 2008 suggests supply will move into surplus this quarter, from a deficit previously.



Lead inventories monitored by the London Metal Exchange have swollen to 64,450 metric tons, the highest since Sept. 25, 2006. The market is moving into a surplus of 40,000 tons this quarter, from a shortfall in the first three months, according to Gayle Berry, an analyst at Barclays Capital in London.


Lead for delivery in three months lost as much as $96, or 4.3 percent, to $2,135 a ton, the lowest since May 25, 2007. It traded at $2,170 a ton as of 4:45 p.m. local time

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