Lead to be tracked on Bloomberg Commodity Index

Lead to be tracked on Bloomberg Commodity Index

Lead to be tracked on Bloomberg Commodity Index 699 527 Batteries International

November 10, 2022: Lead is to become the 24th commodity to be included in the Bloomberg Commodity Index (BCOM), Bloomberg announced on October 27.

A BCOM spokesperson told BESB that world lead production had increased enough over the years —even while liquidity/volume has decreased — for inclusion in 2023, alongside its London Metal Exchange peers aluminium, copper, nickel and zinc.

“Lead has been on the cusp of entering BCOM for many years, narrowly missing the minimum threshold rule for inclusion,” the spokesperson said.

“That is why lead has never been part of BCOM’s composition.”

Launched in 1998, and with historical information available back to 1960, BCOM is a widely tracked benchmark for the commodities market with an estimated market value of investments managed for clients totalling more than $110 billion.

According to Bloomberg, lead will have a target weighting in the index of 0.936%, initially the lowest of any of the base metals.

Target weights are determined in accordance with BCOM methodology, which uses liquidity data and US-dollar-weighted production data to determine the relative quantities of commodities.

The value of the BCOM is calculated on the basis of hypothetical investments in the basket of commodities that make up the index and considers criteria including economic significance, Bloomberg said.