A rise in LME lead prices over the week has pushed scrap and ingot prices in Delhi higher. Secondary lead ingot prices in Delhi rose by almost Rs4,500/mt ($60/mt), up by almost 3pc in a week. Ingot prices in Mumbai rose more gradually by Rs1,300-1,500/mt from a week ago. Markets are returning to normalcy and Mumbai prices are once again below Delhi prices.
The official three-month LME lead contract, Tuesday, settled at $2,351/mt, up by $46 or 2pc from a week ago. The contract rose sharply from July 19 to June 26 by almost $95 only to fall by $30 or 1pc in a day on Tuesday, July 27.
Secondary lead ingot prices rose almost daily in the past week in Delhi. The Davis Index for secondary lead ingot settled at Rs165,333/mt ($2,222/mt) ex-works Delhi producer, up by Rs4,666/mt from the preceding week driven by higher offers in an improving market and supported by LME gains. Market participants remain unsure if these levels can sustain. Markets improved for the grade in Delhi as expected demand pushed offers up.
The Davis Index for lead batteries (drained) settled at Rs95,500/mt del Delhi consumer, up by Rs167/mt from a week prior.
The weekly Davis Index for secondary lead ingot for Mumbai settled at Rs152,167/mt ex-works producer, up by Rs1,377/mt with an increase in raw material prices and increasing demand from battery manufacturing companies. The Davis Index for lead batteries (drained) on Wednesday settled higher by Rs1,417/mt to Rs94,333/mt del Mumbai consumer.
Mumbai markets are moving in line with the demand and relying less on LME levels, noted smelters in the city. Markets for secondary lead ingot for Mumbai weakened in terms of spread as demand on Wednesday was slightly low amid logistic challenges induced by wet season.