Lead scrap prices were trending flat to down for a second consecutive week amidst weak demand from consumer sectors.
The Davis Index for lead batteries (drained) settled at Rs84,625/mt ($1,155/mt) del Delhi consumer, down by Rs475/mt on Wednesday. The weekly index for lead batteries (drained) settled at Rs83,383/mt del Mumbai consumer, down by Rs984/mt.
Prices for lead battery scrap declined in the week as trading thinned across India. Lead smelters state battery scrap and secondary lead ingot prices have fallen by 10pc in Mar 2020, from Mar 2019. Battery makers have reduced bookings impacting demand for lead ingots.
A slump in the domestic auto sector has also added to the pressure on ingot prices. The Davis Index for secondary lead ingot settled at Rs139,200/mt ex-works Mumbai producer down by Rs1,000/mt Wednesday. Indian automakers have curtailed production due to a shortage of auto parts from China amid the Covid-19 outbreak.
The Davis Index for secondary lead ingot settled at Rs141,075/mt ex-works Delhi produces, down by Rs275/mt Wednesday. Smelters
had been anticipating this price decline in the absence of demand. They now hope for increased demand for ingots from generator and UPS makers, who ramp up production ahead of monsoons when India faces power cuts.
The three-month LME lead contract settled at $1,848/mt Tuesday, down by $2/mt from $1,846/mt at the closing hour on Tuesday from the week prior.
($1 = Rs73.24)