Domestic lead ingot prices, Wednesday, sank with the fall in LME lead prices. In Mumbai, the fall was more compared to Delhi. The official three-month LME contract on Tuesday settled at $2,145.5/mt, down by $81/mt or 3.64pc from a week ago.
Demand remained subdued in both cities. Market participants are eagerly waiting for the lockdown to be either lifted or eased. Supply chain disruptions continue to stress production, and with auto sector taking a hit demand for scrap is sluggish. Trades continue to be thin this week. Major recyclers in the North stated negligible trades occurred in Delhi.
Delhi
The weekly Davis Index for secondary lead ingot in Delhi on Wednesday settled at Rs163,617/mt ex-works producer, down by Rs1,666/mt driven by reduced price indications. In the morning session, offers were heard at around Rs166,000/mt which in the later half of the day came down to Rs164,000/mt ex-works in a low demand market. Lower bids brought down market prices in Delhi, however, trades were significantly thin.
The weekly Davis Index for lead batteries (drained) in Delhi settled at Rs96,117/mt del consumer, down by Rs100/mt. Bids from smelters were few with most being shut during the lockdown or running on lower capacities. This has led to a drop in market prices. The Delhi market strengthened in terms of spreads — despite weak trades under a lockdown — to be at par with import prices of secondary lead ingots.
Mumbai
The weekly Davis Index for secondary lead ingot in Mumbai settled at Rs153,689/mt ex-works producer, down by Rs5,886/mt with low bids weighing down prices amid a stringent lockdown. Offers also were lowered in reaction to the drop in LME levels.
A few trades were heard in Mumbai. Shortage of workforce continues to hamper production with sizeable COVID-19 cases still being reported. Slowdown in vaccination is leading to weak sentiments but, with under a week left until lockdown is lifted, market participants are gearing up to resume work.
Market in Mumbai strengthened in terms of spreads with some trades heard and firm demand from battery manufacturers. Demand for industrial battery is high during summers and battery makers are working on ramping-up production, which is a positive sign for the upstream producers. With the auto sector struggling to recuperate, demand from industrial sector is keeping the lead market sharp.
($1=Rs72.7)