Lead scrap and ingot market remained mostly unchanged from the prior week in terms of demand, with prices being flat to up from the prior week. The official three-month LME lead contract settled at $2,073.5/mt on Monday, flat from the previous week. Markets strengthened in terms of spreads for the lead grades.
The weekly Davis Index for secondary lead ingot in Delhi settled at Rs147,333/mt ($2,002/mt) ex-works producer, up by Rs93/mt on Wednesday. Most offers remained unchanged from the prior week amid an equilibrium market.
The weekly Davis Index for secondary lead ingots in Mumbai remained unchanged at Rs145,000/mt ex-works producer.
Markets strengthened for secondary lead ingots in Delhi and Mumbai. Spreads for secondary lead ingot index widened by 0.25pc in Mumbai over the last seven days, while it widened by 0.31pc in Delhi.
The weekly Davis Index for lead batteries (drained) in Delhi Wednesday settled at Rs84,788/mt del consumer, up by Rs98/mt. Most offers remained unchanged from the previous week. In Mumbai, the weekly index for lead batteries (drained) rose by Rs183/mt and settled at Rs85,833/mt del consumer. If scrap prices continue to increase this could result in higher offers for secondary lead ingots in the coming week.
The markets for lead batteries (drained) strengthened while spreads narrowed in Delhi and Mumbai. The spread for lead batteries (drained) Delhi index contracted by 0.21pc while Mumbai index contracted by 0.27pc.
Auto sales were marginally down in November compared to October even though festive season’s demand played its part. This could mean a dip in production as auto associations have advised to keep inventory levels in check while taking stock of domestic demand. Battery demand from auto manufacturers is likely to be lower if auto sales decreases, however, demand from telecom companies is firm.
($1=Rs73.56)