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INTRODUCTION

APPLICATIONS

= Lead (chemical symbol - Pb) is very corrosion-resistant, ductile, and malleable blue-grey metal that hasbeen in use for at least 5,000 years.

= It is usually found in association with zinc, silver, as well as copper ores.

= It is one of the most sustainable and recyclable commodities. It can be recycled indefinitely, without lossof its physical or chemical properties. Recycled lead accounts for more than 60% of the total leadproduction.

=  The lead production process consumes less energy as compared to the production of any other metal.

Lead is principally used for manufacturing batteries, especially the ones used in automobiles, motorcycles,electric cars and bicycles. Its incredible density provides unrivalled protection from radiation and is used inhospitals, dental surgeries, laboratories and nuclear installations. Lead acid batteries are vital as a back-upemergency power supply in case of power failure in computer installations, banks, telephone exchanges andaircraft control towers amongst others. In the ongoing quest for clean energy, people have been turning toalternative sources such as wind power and solar cells, whose storage and distribution systems rely on lead-acid batteries. In earthquake prone regions such as Japan and California, the buildings are mounted on leadshock absorbers that help minimise damage during tremors or earthquakes.

DEMAND & SUPPLY

= In 2012, the global lead mine production increased by 11.5%, over that of 2011.= Global refined lead production increased by 0.22% from 10.594 million metric tonnes (MMT) in 2011 to

10.617 MMT in 2012 .=  The world’s refined lead consumption rose to 10.553 MMT in 2012, up from 10.418 MMT in 2011.= India and the Republic of Korea saw an increase in production of 8.9% and 8.2%, respectively, while India

and Japan saw an increase in consumption of 15.6% and 12.2%, respectively.

Lead-usage

Source: ILZSG

80%

6%

5%

3%3% 2% 1%

Batteries

Rolled and extruded products

Pigments and other compounds

Shot ammunition

Miscellaneous

Alloys

Cable sheathing

The Multi Commodity Exchange of India Limited (MCX) is a India-based state-of-the-art electronic

commodity futures exchange that facilitates online trading, and clearing and settlement of commodityfutures transactions, providing a platform for risk management. MCX offers trading in more than 40

commodity futures contracts across segments including bullion, ferrous and non-ferrous metals, energy,

and agricultural and agri-based commodities.

World Refined Lead Production(in thousand MT)

Others

Australia

Rep. Korea

Japan

India

China

United States

Mexico

Canada

Europe

Source: ILZSG

    (    i   n   t    h   o   u   s   a   n    d   t   o   n   s    )

0

2000

4000

6000

8000

10000

12000

World Refined Lead Consumption(in thousand MT)

Others

India

Rep. Korea

Japan

China

United States

Europe0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 20122008 2009 2010 2011 2012

MCX is a

leading

commodityexchange in

India, with a

market share of

87%*(Q3 FY 2012-13)

*In terms of the value of commodity

futures contracts traded

(Source: Data maintained by FMC)

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INDIAN SCENARIO

GLOBAL SCENARIO

FACTORS INFLUENCING THE MARKET

= In 2012, refined lead production was around 169,301 MT.=  The main producers of lead are Hindustan Zinc Limited (HZL) and Indian Lead Limited (ILL).

= In 2012, the global lead mine production was higher in a number of countries including Mexico, Peru, theRussian Federation and Turkey, however, the increase was principally due to a reported 20.4% rise inChina.

= Increased output of refined lead metal in India, the Republic of Korea, the United Kingdom and the UnitedStates were largely balanced by reductions in Australia, Kazakhstan, Morocco, New Zealand and Spain.

= In 2012, despite a further decline in Europe’s demand for refined lead metal by 2.4%, the global usageincreased by 1.3%, over the previous year. This was primarily a consequence of higher demand in India,Japan, Mexico and the United States. Apparent demand in China was unchanged from 2011.

= China’s import lead concentrates rose by 26.3% in 2012 over the previous year, to reach a record of justover 1 MMT.

= In 2011, the leading refined lead exporting countries were Australia, Canada and Germany, whereas theleading refined lead importing countries were USA, UK and India.

= Lead prices in India are fixed on the basis of the rates in the international spot market, and Indian Rupeeand US Dollar exchange rates.

= Economic events such as national industrial growth, global financial crisis, recession, and inflation affectthe metal prices.

= Commodity-specific events such as the construction of new production facilities or processes, new uses orthe discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supplydisruption, accident, strike, and so forth), or industry restructuring, all affect metal prices.

=  Trade policies set by the Government (implementation or suspension of taxes, penalties, and quotas)affect supply as they regulate (restricting or encouraging) material flow.

= Geopolitical events involving governments or economic paradigms and armed conflict can cause majorchanges.

= As societies develop, their demand for metal increases based on their current economic position, whichcould also be referred as ‘National Economic Growth Factor’.

Exchange Product Lot Size IST

LME Lead 25 MT 6:30 to 00:30 *Lead Mini 5 MT 17:10 to 22:40 **

Shanghai Futures Lead 25 MT 6.30 to 9.00

Exchange (SHFE) 11:30 to 13:30#

MCX Lead 5 MT 10:00 to 23:30 (Monday-Friday)Lead Mini 1 MT 10:00 to 14:00 (Saturday)

IMPORTANT GLOBAL EXCHANGES

* LME select ** LME Ring timing (Start time:- Ring session, End time - Kerb Trading) #: Day light timing 10:00 to 23:55 (Winter)

Source: UN Comtrade - Year book 2012

 Leading Exporters - 2011Refined Lead

13.4%

10.2%

9.2%

6.4%

6.1%5.2%4.5%

4.4%3.0%

2.6%2.6%

2.2%

30.2%

AustraliaCanadaGermany

UK 

Rep. Korea

KazakhstanMexico

BelgiumRussian FederationIndiaBulgaria

ChinaOther Countries

Leading Importers - 2011Refined Lead

10.2%

8.6%

6.5%

6.3%

5.8%

4.9%4.4%4.1%3.9%

3.8%

41.5%

USAUK IndiaRep. KoreaGermanyViet Nam

SpainItalyMalaysiaOther Asia, nesOther Countries

Globally, MCX isNo.1 in gold

and silver,

No.2 in

natural gas,

and No.3 in

crude oil**In terms of the commodity futures

contracts traded during CY 2011

(Source: Websites of exchanges

and FIA data)

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Source: Bloomberg

MCX Lead Volume & Open Interest

Source: MCX R&D

LME Lead 3 MTs Prices Vs LME Stocks

Source: Bloomberg LME Stock  LME Price

 MCX Correlation - 99.61%Lead Near Month vs LME Cash

    $    /    M    T

    `

   /   k  g

42504000375035003250300027502500225020001750150012501000

750500

2500

1701601501401301201101009080706050403020

100

    J   a   n  -    0    7

    A   p   r  -    0    7

    J   u    l  -    0    7

    O   c   t  -    0    7

    J   a   n  -    0    8

    A   p   r  -    0    8

       J     u       l   -       0       8

    O   c   t  -    0    8

    J   a   n  -    0    9

    A   p   r  -    0    9

    J   u    l  -    0    9

    O   c   t  -    0    9

    J   a   n  -    1    0

    A   p   r  -    1    0

    J   u    l  -    1    0

    O   c   t  -    1    0

    J   a   n  -    1    1

    A   p   r  -    1    1

    J   u    l  -    1    1

    O   c   t  -    1    1

    J   a   n  -    1    2

    A   p   r  -    1    2

    J   u    l  -    1    2

    O   c   t  -    1    2

    J   a   n  -    1    3

LME MCX

Open Interest PriceVolume

    O    I    &    V   o    l    i   n    M    T

    P   r    i   c   e    i   n

    /    k   g

   `

-30000

20000

70000

120000

170000

220000

270000

320000

0

20

40

60

80

100

120

140

    A   p   r  -    0    8

    J   u   n  -    0    8

    A   u   g  -    0    8

    O   c   t  -    0    8

    D   e   c  -    0    8

    F   e    b  -    0    9

    A   p   r  -    0    9

    J   u   n  -    0    9

    A   u   g  -    0    9

    O   c   t  -    0    9

    D   e   c  -    0    9

    F   e    b  -    1    0

    A   p   r  -    1    0

    J   u   n  -    1    0

    A   u   g  -    1    0

    O   c   t  -    1    0

    D   e   c  -    1    0

    F   e    b  -    1    1

    A   p   r  -    1    1

    J   u   n  -    1    1

    A   u   g  -    1    1

    O   c   t  -    1    1

    D   e   c  -    1    1

    F   e    b  -    1    2

    A   p   r  -    1    2

    J   u   n  -    1    2

    A   u   g  -    1    2

    O   c   t  -    1    2

    D   e   c  -    1    2

    F   e    b  -    1    3

    S   t   o   c    k   s    I   n    M    T

    P   r    i   c   e    i   n    $    /    M    T

0

500

1000

1500

2000

2500

3000

3500

4000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

    J   a   n  -    0    8

    M   a   r  -    0    8

    M   a   y  -    0    8

    J   u    l  -    0    8

    S   e   p  -    0    8

    N   o   v  -    0    8

    J   a   n  -    0    9

    M   a   r  -    0    9

    M   a   y  -    0    9

    J   u    l  -    0    9

    S   e   p  -    0    9

    N   o   v  -    0    9

    J   a   n  -    1    0

    M   a   r  -    1    0

    M   a   y  -    1    0

    J   u    l  -    1    0

    S   e   p  -    1    0

    N   o   v  -    1    0

    J   a   n  -    1    1

    M   a   r  -    1    1

    M   a   y  -    1    1

    J   u    l  -    1    1

    S   e   p  -    1    1

    N   o   v  -    1    1

    J   a   n  -    1    2

    M   a   r  -    1    2

    M   a   y  -    1    2

    J   u    l  -    1    2

    S   e   p  -    1    2

    N   o   v  -    1    2

    J   a   n  -    1    3

    M   a   r  -    1    3

MCX reaches

out to over

1,770 cities and

towns in India

through

3,46,000+

trading

terminals(including CTCL)

(as of Q3 FY 2012-13)

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CONTRACT SPECIFICATIONS LEAD & LEADMINI

SYMBOL LEAD LEADMINI

Description LEADMMMYY LEADMINIMMMYY

 Trading period Monday through Saturday# Trading session Monday to Friday: 10:00 am to 11:30 pm

Saturday: 10:00 am to 2:00 pm

Contract month Monthly contracts

Expiry date Last day of the contract

 Trading unit 5 MT 1 MT

Quotation/base value    ̀/ kg

 Tick size 5 paise / kg

Maximum order size 100 MT

Daily price limit 4%

Initial margin Minimum 5% or based on SPAN, whichever is higher

Special margin In case of additional volatility, an additional margin (on both buy & sell

side) and/ or special margin (on either buy or sell side) at such percentage,as deemed fit; will be imposed in respect of all outstanding positions.

Maximum allowable For Individual clients: 1,800 MT

For a member: 9,000 MT or not more than 15% of the market-wide openposition, whichever is higher.

Delivery logic Both options

Delivery unit 10 MT with tolerance limit of +/– 1% (100 kg)

Delivery center(s) Within 20 kilometers outside Mumbai octroi limit

Due date rate (DDR) Due date rate is calculated on the last day of the contract expiry, by takinginternational spot price of Lead and it would be multiplied by Rupee-US$rate as notified by the Reserve Bank of India.

IMPORTANT WEB SITES

www.mcxindia.com

Note: Please refer to the exchange circulars for the latest contract specifications and delivery and settlement

procedures.

open position

calculation

#: Day light timing 10:00 am to 11:55 pm (Winter)

MCX is the first

commodity

exchange in

India to launch

mini futures

contracts in

variouscommodities

       0       9       0       4       1       3

Multi Commodity Exchange of India Limited

Exchange Square, Suren Road, Chakala, Andheri (East), Mumbai 400 093 | Tel. no.: +91-22-6731 8888 | Email: info@mcxindia.com | Website: www.mcxindia.com

Customer Support: +91-22-6649 4040 | To get the latest futures prices on mobile: visit http://m.mcxindia.com  or sms “MCX <Commodity name>” to 58888