Lead scrap and ingot prices were up for the third consecutive week in August. Prices gained by Rs2,000-4,000/mt ($27-54/mt) in Delhi and Mumbai, on Wednesday from a week ago, as LME lead contracts gained.
The official LME cash contract gained $115/mt and settled at $2,428/mt on Tuesday over the week which pulled scrap prices up with it, said market participants. The three-month LME lead contract gained $20.5/mt and settled at $2,313/mt on Tuesday.
The price increases were strictly in line with LME levels while domestic demand for scrap and ingot remained flat as compared to the prior week. Delhi and Mumbai markets strengthened on Wednesday in terms of spreads as prices increased while demand could rise in the coming days, but high domestic prices might stall new bookings.
Most prices of lead grades are currently trading at year-high levels. Market participants believed, prices are inflated and are not in sync with demand in India and thus, could cool down in the near term.
Battery manufacturers have shared positive sentiments for the current quarter as demand for batteries from the industrial sector and telecom sectors remained strong while demand from the auto sector is on uptrend.
The weekly Davis Index for secondary lead ingot for Delhi settled at Rs173,500/mt ($2,335/mt) ex-works producer, up by Rs3,389/mt from a week ago driven by higher offers prompted by LME levels. The weekly index for the same grade for Mumbai settled at Rs169,500/mt ex-works producer, up by Rs3,937/mt on Tuesday.
Offers for battery scrap prices in both Mumbai and Delhi crossed Rs100,000/mt for the first time this year. The weekly Davis Index for lead batteries (drained) on Wednesday settled at Rs101,040/mt del Delhi consumer, up by Rs2,540/mt from a week ago and the weekly index for lead batteries (drained) for Mumbai settled at Rs99,771/mt del Mumbai consumer, up by Rs3,181/mt, due to a rise in offers. A jump in scrap prices pushed smelters to increase secondary lead ingot prices on Wednesday.