Demand for lead in Japan, the third-biggest economy, is set to climb as the country seeks batteries and generators to help it recover from the destruction caused by its strongest earthquake on record and tsunami.
Carmakers from Ford Motor Co. to Audi AG and Jaguar Land Rover Plc are using record amounts of aluminum to replace heavier steel, providing relief to producers of the metal confronting excess supplies and depressed prices.
The proposed additional delivery requirement at warehouses monitored by the London Metal Exchange should help limit the potential for spikes in metal premiums caused by long wait times at some locations, according to Barclays Plc.
Copper supplies relative to demand will fall to a four-year low as operating glitches, labor shortages and declining ore-grade quality cut mine supplies, boosting prospects for a price rebound, Barclays Capital said.
Copper may fall in London on concern about the outlook for the real-estate market in China, the world’s biggest user of the metal, as the government assesses the risk of a possible property-price slump.
Copper stockpiles in warehouses monitored by the London Metal Exchange climbed to the highest level in almost 16 months on deliveries amid weak demand and incentives storage companies offer to attract metal.