Prices in Mumbai have increased for lead scrap and secondary lead ingot after dropping the previous week. In Delhi prices had risen last week, but on Wednesday, April 14 it was marginally down from the week prior. Demand is expected to rise but such a boost is not yet visible, said market participants.
The weekly Davis Index for lead batteries (drained) in Mumbai settled at Rs89,750/mt ($1,194/mt) del consumer, up by Rs250/mt in line with LME. The official three-month LME lead contract gained $10/mt as it settled at $1,977/mt on Tuesday. Rupee has weakened over the week which could raise import prices of material — a cue for domestic prices to be at par. Rupee slumped to 75 a dollar from 73.3 against a dollar last week.
Scrap prices may go higher as workers return to their hometowns in the fear of a strict lockdown, just like last year when the first lockdown was announced. In Maharashtra, industries would not be affected as the government has not directed them to stop production . Lack of workers and increasing COVID-19 cases, however, is likely to impact production.
The weekly Davis Index for secondary lead ingot on Wednesday in Mumbai rose by Rs944/mt to Rs151,444/mt ex-works producer. Prices have moved up to be in parity with the hike in scrap prices. Markets weakened in terms of spreads in Mumbai for both the grades despite a rise in prices. Spread for lead batteries (drained) price index widened by 0.93pc from the prior week and for secondary lead ingot, it narrowed by 1.21pc.
The weekly Davis Index for secondary lead ingot in Delhi slipped marginally by Rs11/mt to Rs160,000/mt ex-works producer, down in line with raw material prices. Raw material prices were between Rs93,000-94,000/mt in Delhi. The weekly Index for lead batteries (drained) on Wednesday settled at Rs93,833/mt del Delhi consumer, down by Rs667/mt. Prices in a week have dipped in Delhi owing to lower number of trades while expectation of good demand persists among market participants.
Delhi market weakened in terms of spreads. For lead batteries (lead) price index, spreads widened by 1.61pc and for secondary lead ingot Delhi prices, it narrowed by 1.97pc from the week prior.