Domestic markets in India were quiet in the week ending Oct 7 as prices in Mumbai and Delhi trended flat to up from the prior week. In the same week, the official three-month LME contract dipped by $66.5/mt to close at $1,778.5/mt on Tuesday from the prior week. In terms of spread, markets in Mumbai and Delhi strengthened from a week ago.
The Davis Index for lead batteries (drained) in Mumbai rose by Rs167/mt ($2.27/mt) to Rs 79,667/mt del consumer on Wednesday from the previous week. There is not much movement in the market but it is gradually slowing down. There is demand from battery makers on the back of auto sector demand, said smelters. The Davis Index for secondary lead ingots in Mumbai remained flat from the previous week at Rs142,000/mt ex-works consumer. Smelters refused to lower offers amid optimism in the auto sector despite a fall in average global prices of lead.
The market for lead in Mumbai strengthened in terms of spread. Spreads for battery scrap narrowed by 2.72pc as the index rose by 0.21pc and LME fell by 3.60pc in a week. Markets for secondary lead ingots also strengthened as spreads widened by 4pc despite domestic prices remaining flat from the previous week.
In Delhi, the Davis index for lead batteries (drained) settled at Rs79,833/mt del consumer, on Tuesday, flat from a week ago. Trades settled between Rs79,000-81,000/mt on Tuesday, similar to previous week levels. Throughout the week there was less price movement and the fall in LME failed to influence the domestic markets in India. The Davis Index for secondary lead ingot in Delhi settled at Rs144,500/mt ex-works producer, up by Rs500/mt on Wednesday from the preceding week.
Delhi markets for lead scrap and ingots strengthened in terms of spread. For secondary lead ingots spreads widened by 5pc, index rose by 0.35 while LME fell by 3.60pc in a week. The spread for battery scrap contracted by 2.72pc from the previous week. Prices for battery scrap, however, remained flat from the previous week.
Auto sales recovery is instilling confidence back in the market for metals, including lead. Auto sector is supporting the demand for lead scrap and ingots as battery makers are ramping up production for festive season. On the contrary, LME lead is on a downward trend which may pull prices lower in the near term.