Lead prices rose across grades on Wednesday on the back of higher offers led by LME lead’s sharp rise over the week. The official LME lead contract settled at $2,089/mt, up by $67/mt or 3.31pc on Tuesday from the prior week. Domestic markets weakened in terms of spreads compared to previous Wednesday.
Delhi
The weekly Davis Index for secondary lead ingot in Delhi on Wednesday settled at Rs157,500/mt ($2,163/mt) ex-works producer, up by Rs1,000/mt on the back of higher offers in the city prompted by sharp rise in LME levels. Raw material prices have also increased. The weekly Davis Index for lead batteries (drained) settled at Rs92,000/mt del consumer, up by Rs778/mt. Delhi markets weakened in terms of spreads. For secondary lead ingot Delhi index, spreads narrowed by 2.61pc while for lead batteries (drained) Delhi index, spreads widened by 0.58pc from the prior week.
Mumbai
The weekly Index for secondary lead ingot in Mumbai on Wednesday settled at Rs153,500/mt ex-works producer, up by Rs1,167/mt driven by higher offers on the back of Lme rise and not particularly due to shift in demand. The weekly index for lead batteries (drained) settled at Rs91,111/mt del consumer, up by Rs1,667/mt. Mumbai markets weakened in terms of spreads too, like Delhi markets. For secondary lead ingot Mumbai index, spreads narrowed by 2.41pc from the previous week. Spreads for lead batteries (drained) Mumbai index, spreads widened by 1.17pc, indicating a weakened market.
Demand for secondary lead ingot has not significantly changed in Delhi and Mumbai. Demand is firm for ingots and drained batteries. Prices have been trending in line with LME levels and have been more sensitive to hikes than slips, a Mumbai trader noted. The last quarter of the fiscal year has always ended on a strong note given the high demand for batteries used in invertors. Demand for new batteries from automotive sector may be hurt due to the severe shortage of semiconductors resulting in production cuts.
($1 = Rs72.8)