Domestic lead scrap and secondary ingot prices inched up on Wednesday over the last one week, driven by rise in LME levels but pressured by moderate demand. In the week ending on Wednesday, prices rose between Rs33-270/mt, the rise being more prominent in Delhi.
The weekly Davis Index for secondary lead ingot in Delhi settled at Rs160,790/mt ($2,192/mt) ex-works producer, up by Rs270/mt on Wednesday driven by a climb in LME levels.
Demand remains depressed but is expected to climb as lockdown is being eased, which should result in thick trades. Market participants are waiting for daily activities to return to normalcy as several units are facing financial losses due to lockdown.
The weekly Davis Index for Mumbai secondary lead ingot settled at Rs160,150/mt ex-works producer, up by Rs117/mt. Low demand resulted in producers to hike offers only marginally to attract trades to use up inventories in this struggling period.
In last two months, prices in Delhi have been almost flat while prices in Mumbai for secondary lead ingot has jumped by around Rs10,000/mt to current levels.
The weekly Davis Index for lead batteries (drained) in Mumbai settled at Rs93,983/mt del consumer, up by Rs33/mt on Wednesday in line with LME. Producers hiked secondary lead ingot prices which prompted scrap sellers to raise prices. The Davis Index for lead batteries (drained) for Delhi rose by Rs120/mt to Rs92,540/mt del consumer on Wednesday.
Prices in Delhi and Mumbai have almost reached similar levels in a period of one month with Mumbai’s prices climbing higher over the month, supported by production cuts in the city and acute labour shortages.
In terms of spreads, markets have weakened for all the grades in both the cities. LME on Tuesday reached $2,185/mt, up $31/mt from a week prior while lead scrap and ingot prices in India rose marginally amid low demand. Trades are yet to pick up, and domestic market on Wednesday was more responsive to demand and supply rather than LME cues.