Domestic lead prices across grades were flat to down in the week that ended on Wednesday in Delhi and Mumbai triggered by a fall in LME lead contract prices. In Delhi, secondary lead ingot prices and battery scrap prices fell marginally by under Rs300/mt ($4/mt) over the week while in Mumbai prices fell sharply.
The official three-month LME lead contract fell by $110/mt to $1,976.5/mt on Tuesday in a week which led to domestic offers also being revised downwards. Demand in domestic markets was unchanged, according to market participants. Markets for lead grades strengthened in terms of spread on Wednesday compared to the previous week.
The weekly Davis Index for lead batteries (drained) on Wednesday settled at Rs95,250/mt ($1,271) del consumer, down by Rs250/mt. Lower scrap rates prompted secondary lead ingot producers to also reduce prices. The weekly index for secondary lead ingot on Wednesday in Delhi settled at Rs161,000/mt ex-works producer, down by Rs231/mt. Offers were higher in the first half of the day but very few deals were heard at those levels.
Offers in the morning session exceeded Rs163,000/mt in Delhi for secondary lead ingots. Bids for secondary lead ingot were around Rs160,000/mt from some consumers and by afternoon, some deals were heard at Rs161,000/mt in Delhi. Prices gradually came down the same day.
Lead prices are likely to continue its downtrend on LME cues as no consumer would be willing to pay higher prices when LME is significantly down, unless there is pressing need to procure.
Delhi markets for both, scrap and ingot, strengthened on Wednesday in terms of spread. For secondary lead ingot, spreads for the prices index widened by 6pc from the previous week. Spreads for lead batteries (drained) index contracted by 3.44pc.
The Davis Index for lead batteries (drained) in Mumbai on Wednesday settled at Rs92,778/mt del consumer, down by Rs1,472/mt. Prices in Mumbai dropped sharply from a week prior in comparison to Delhi’s prices. Demand was firm and has not changed out of proportion.
Mumbai markets were in parity but prices dropped in line with LME. Some deals were heard at and around the index prices on Wednesday. The Davis Index for secondary lead ingot in Mumbai settled at Rs155,111/mt ex-works producer, down by Rs2,472/mt in a week on reduced offers.
The spreads for secondary lead ingot in Mumbai widened by 4.3pc on Wednesday from the prior week and the spreads for lead battery (drained) contracted by 2.58pc. Markets in Mumbai strengthened in terms of spreads.
($1 = Rs72.95)