Lead scrap prices in Delhi trended flat to down on Wednesday from a week ago as demand failed to revive. Buyers kept bids unchanged from last week, unwilling to accept a raise in offers. In Mumbai, prices inched up amid a gradual improvement in demand from domestic markets.
The weekly Davis Index for lead batteries (drained) for Delhi on Wednesday settled at Rs92,690/mt ($1,246/mt) del Delhi consumer, down by Rs285/mt as demand remains low and trades few. The Davis Index for secondary lead ingot on Wednesday settled at Rs159,942/mt ex-works Delhi producer, down by Rs1,058/mt from a week ago, also on slow trading. Smelters were pressured with lower bids from consumers in a market where most industries are trying to recover from the slowdown due to lockdown restrictions.
Prices in Delhi slipped despite a climb in LME lead levels. The official three-month LME lead on Tuesday settled at $2,283/mt, up by $110/mt or 5pc from a week prior. Delhi prices moved against the LME trend driven by local market dynamics.
The market for lead grades in Delhi weakened in terms of spreads as trades continued to be weak, especially in the high-demand season. Demand is expected to improve, and prices are likely to rise upwards in the coming weeks as soon as the impact of the lockdown subsides.
In Mumbai, the weekly Davis Index lead batteries (drained) settled at Rs94,650/mt del Mumbai consumer, up by Rs650/mt driven by higher LME levels and improvement in demand in Maharashtra. The weekly Davis Index for secondary lead ingot in Mumbai settled at Rs161,590/mt ex-works producer, up by Rs1,090/mt supported by production cuts and activities in downstream industries gaining momentum.
Mumbai markets weakened in terms of spreads for both scrap and ingots despite a rise in weekly prices. There is room for prices to increase, but the market is yet to recover as expected since supply shortages, lack of skilled laborers, and financial issues continue to pressure the lead markets in India.