The weekly Davis Index for US heavy soft lead scrap fell by 3¢ to 71¢/lb delivered on Wednesday, amid muted activity.
The Index for mixed hard lead and whole undrained batteries also declined by a penny each to 37¢/lb and 68¢/lb, respectively, while the premium for lead ingots remained flat at 10¢/lb.
Market participants dealing in scrap lead batteries have had a slow selling season so far with the mild weather failing to generate scrap supply—which, on a seasonal basis, rises during cold winters.
Lead scrap sellers are concerned about the long-term impact of the coronavirus in China and its impact on trade. In the short-term, the outbreak is likely to create oversupply, which could put downward pressure on prices.
The US lead market, which prefers some volatility on the LME for active buying and selling, was disappointed with the narrow range of the commodity’s movement when the three-month LME lead official contract settled at $1,845.50/mt Wednesday, up by about $10/mt from $1,835/mt a week earlier.