Lead scrap and ingot prices continued their uptrend on Wednesday despite a drop in LME levels indicating increased domestic demand. Scrap prices have moved up for three consecutive weeks.
The official three-month LME lead contract, Tuesday, settled at $2,292.5/mt, down by $103.5/mt or by 4pc in a week. Base metals across exchanges continued to decline this week. The three-month lead contract dipped sharply last Wednesday and Thursday and extended losses over the week. In those two sessions, the contract dipped by $107/mt on Friday.
The weekly Davis Index for secondary lead ingot for Delhi on Wednesday settled at Rs170,111/mt ($2,286/mt) ex-works producer, up by Rs736/mt driven by an increase in offers. Scrap prices also surged due to higher demand from smelters. The Davis Index for lead batteries (drained) settled at Rs98,500/mt del Delhi consumer, up by Rs2,167/mt from the week prior.
The Davis Index for secondary lead ingot for Mumbai settled at Rs165,563/mt ex-works producer, up by Rs63/mt on Wednesday from a week prior. Some smelters kept their offers unchanged from the prior week as demand remained firm, however, prices were offset by the sharp drop in LME levels. The Davis Index for lead batteries (drained) for Mumbai settled at Rs96,590/mt del Mumbai consumer. Market participants said the increase in price exceeds the rise in demand.
Markets in Mumbai and Delhi improved for all grades in terms of spreads as prices remained firm despite a fall in LME levels. Disruptions in supply also boosted prices, said smelters.
The outlook for the lead market remains positive as the economy is on recovery with an increase in developments in the infrastructure and automobile sectors.
($1=Rs74.4)