In Delhi, the Davis Index for secondary lead ingot, Wednesday, settled at Rs151,722/mt ($2,075/mt) ex-works producer up Rs1,722/mt from the prior week as LME rose sharply over the week. Despite a rise in lead scrap prices across grades, markets in India weakened in terms of spread.
Demand of secondary lead ingots remained firm, said smelters in Mumbai and Delhi, however, they increased offers on higher LME prices. The Davis Index for secondary lead ingot in Mumbai rose Rs444/mt to Rs149,222/mt ex-works producer from the previous week. The market for secondary lead ingot in Mumbai weakened as spreads for the index narrowed by 4.46pc from the previous week while the spread for Delhi index contracted by 3.66pc.
The official three-month LME lead on Tuesday rose $100/mt or 5.10pc to $1,959/mt from the previous week, which resulted in a jump in prices of all lead grades. An increase in prices was not a result of higher trades or demand, reiterated market participants but only a response to higher LME. Higher prices of battery scrap will lead to higher secondary lead ingot prices, which is the raw material for battery manufacturers, who are wary of the sharp increase in prices.
In Mumbai, there is a supply crunch, stated buyers, which also supports price hike. Prices of lead batteries (drained) scrap increased in the week as demand from smelters remained firm. In Mumbai, the Davis Index for lead batteries (drained), Wednesday, rose by Rs83/mt to Rs89,250/mt del consumer supported by demand from smelters. The market for lead batteries (drained) weakened compared to the prior week as spreads for the index widened by 2.80pc from the preceding week.
The Davis Index for lead batteries (drained) Wednesday settled at Rs89,667/mt del Delhi consumer, up by Rs2,750/mt from a week ago with healthy trades in the city. Offers rose amid higher LME prices and expectations that it will rise further. The market for the grade in Delhi weakened with the spreads for the index widened by a marginal 0.96pc from the prior week, while the index rose by 3.16pc in a week.