Domestic secondary lead ingot prices in Delhi zoomed by over Rs4,500/mt over the week with offers in the range of Rs165,000-166,000/mt on Wednesday. Market participants expect prices to sustain in the short term.
Markets in Delhi and Mumbai strengthened in terms of spreads. In Delhi, trades improved despite the lockdown. Despite the disruption caused by cyclone Tauktae, a few trades were reported in Mumbai. Prices were higher in line with LME’s impressive climb for the fourth straight session.
Offers in Delhi have been rising since Monday, while earlier, the prices hovered around Rs161,000/mt. On Monday, prices jumped by almost Rs1,000/mt from Friday’s levels driven by LME and on Tuesday it rose by a whopping difference of Rs3,000/mt from Monday.
In the last four sessions, LME lead official three-month contract has risen sharply by $92/mt or 4pc, acting as a benchmark, raising domestic scrap prices. The weekly Davis Index for secondary lead ingot in Delhi settled at Rs165,283/mt ex-works producer, up by Rs4,145/mt driven by a rise in offer prices.
The weekly Davis Index for lead batteries (drained) on Wednesday for Delhi settled at Rs96,217/mt del Delhi consumer, up by Rs1,600/mt. Higher scrap prices prompted smelters in Delhi to raise offers for secondary lead ingots. Spreads have narrowed by 1.48pc from the prior week driven by slight improvement in trades.
LME lead was down by $9/mt over the week — though it climbed sharply in the last four days which led to domestic prices increasing in sync with it.
The weekly Davis Index for secondary lead ingot in Mumbai settled at Rs159,575/mt ex-works producer, up by Rs2,375/mt. Cyclone Tauktae created logistics and production hindrances in the past few days. Some smelters are still facing the headwinds and would take some time to recuperate. Trading activities are expected to go back to normal as soon as rains subside.
The lockdown has already affected business but offers are rising in line with LME and import prices of secondary lead ingots. The weekly Davis Index for lead batteries (drained) on Wednesday settled at Rs94,033/mt del Mumbai consumer, up by Rs750/mt.
Prices in Mumbai did not rise as much compared to Delhi, as demand was hit in Mumbai due to the cyclone. Prices have room to rise further in Mumbai.