Indian scrap markets were closed amid a nation-wide COVID-19 lockdown on Wednesday. The weekly Davis Index for lead batteries (drained) settled flat at Rs83,975/mt ex-works Mumbai consumer on Wednesday as smelters shied away from scrap booking. Most scrap yards were closed for operations complying with the government’s lockdown orders until April 14. The Davis Index for lead batteries (drained) settled at Rs84,085/mt ex-works Delhi consumer flat from the week prior.
Battery scrap sellers said that markets could open in April or May and no predictions can be made as to where the market is headed. In the prior week, prices increased driven by good demand from smelters stocking inventories ahead of the lockdown. Traders expect robust demand when the markets re-open and expect a 5-10pc uptick in prices.
Most smelters and secondary ingot producers were shut since last week. Some smelters that are equipped with an electric arc furnace were open but in the absence of buyers had to eventually shut operations. Early in the week, market participants tried to liquidating their stock but had difficulty finding buyers.
The Davis Index for secondary lead ingot settled at Rs139,100/mt, ex-works Mumbai producer flat from Wednesday the week prior. Some smelters have to meet their deadlines for product delivery which is tough given the rise in freight prices and absence of transportation. The Davis Index for secondary lead ingot for Delhi settled at Rs140,950/mt, ex-works producer flat as trades stopped.
Market participant are trying to seek clarity of when the lockdown would end. The 21 days lockdown is expected to hamper trade for the next two months, said traders. As soon at the market re-opens, movement of materials will start immediately and the same is expected to reflect in the price of scrap.