Domestic lead prices across grades rose by 3-4pc in the week ending December 2 from the previous week. Improved local demand coupled with higher LME levels have resulted in the price hikes. Markets in Delhi and Mumbai strengthened in terms of spreads.
In Mumbai, the weekly Davis Index for secondary lead ingot Wednesday settled at Rs145,000/mt ($1,965.57/mt) ex-works producer, up by Rs4,310/mt in a week driven by firm trades in the city. Offers were raised on expectation of higher demand and LME levels.
The official three-month LME lead rose by $52/mt, or 2.57pc, to $2,073/mt on Tuesday from a week ago. LME lead is up by $283/mt or 16pc from a month ago.
In Delhi, the weekly Davis Index for secondary lead ingot in Delhi Wednesday settled at Rs147,240/mt ex-works producer, up by Rs6,400/mt.
Demand from battery manufacturers has risen this week compared to normal trade levels due to uptick in auto sales, said smelters. Demand is sturdy from telecom sector also. Several export markets are opening and recovering from COVID-19 consequences which is aiding demand for batteries.
Markets for secondary lead ingots strengthened in Mumbai and Delhi as spreads widened for the indexes by almost 2pc (Delhi) and 0.63pc (Mumbai) from the previous week. Mumbai index for secondary lead ingot rose by 3pc while the index for Delhi rose by 4.5pc in a week.
The weekly Davis Index for lead batteries (drained) in Delhi settled at Rs84,690/mt del consumer up by Rs3,607/mt on Wednesday while in Mumbai it rose by Rs3,550/mt to Rs85,650/mt del consumer.
Markets for battery scrap also strengthened in the week compared to the previous week as spreads contracted. The spread for Delhi’s lead batteries (drained) contracted by 1.10pc after it rose by 4.32pc, whereas in Mumbai it contracted by 1.04pc with an increase of 4.45pc in price.
Market participants said 2021 is an ‘unchartered territory’ when it comes to sustainability of prices. Most believe that prices are looking upwards but are bound to be volatile in the near term.
($1=Rs73.77)