Lead scrap and ingot prices in Delhi and Mumbai slipped in the week ending Oct 21 with no improvement in demand combined with a 3pc fall in LME lead contract from the prior week. Prices of secondary lead ingot fell by over 2pc in Delhi after almost three consecutive weeks of slow trading, which had kept the index flat.
The Davis Index for secondary lead ingot in Delhi Wednesday dropped by Rs3,375/mt to settle at Rs141,125/mt ($1,919.02/mt) ex-works producer from the prior week driven by weak demand in the city. Offers were adjusted downwards in line with a fall in LME lead.
Battery demand is perceived to be on a downtrend despite improving auto sales, said recyclers. In Mumbai, the Davis Index settled at Rs141,750/mt ex-works producer, down by Rs250/mt from prior Wednesday as demand failed to pick up.
The official three-month LME contract settled at $1,768/mt, down by $69.5/mt or by 3.78pc on Tuesday from a week ago which resulted in some secondary lead producers reducing prices. The market for secondary lead ingots in both Delhi and Mumbai, however, strengthened in terms of spread despite a fall in domestic prices. The spread for Delhi secondary ingot widened by 1.45pc and Mumbai’s by 3.78pc from the prior week. The fall in domestic prices was relatively lesser than LME lead contract’s decline.
The Davis Index for lead batteries (drained) in Mumbai settled at Rs79,500/mt del consumer down by Rs438/mt from the previous Wednesday. In Mumbai, the overall market for lead remained unchanged with no substantial events influencing demand or prices said market participants.
The Davis Index for lead batteries (drained) settled at Rs80,000/mt del Delhi consumer Wednesday, flat from the previous week. Demand from battery manufacturers has taken a breather and this could be possible as auto inventories were quite high by the end of last week and many companies may wait to retail their finished inventories before buying raw material.
The market for battery scrap in both Delhi and Mumbai strengthened in the week as spreads narrowed from the previous week by 1.90pc in Mumbai and 2.24pc in Delhi. Prices of scrap in Delhi are relatively high and secondary ingot producers may delay their scrap purchases leading to fewer trades this week.
($1=Rs73.54)