Domestic offers for lead scrap and ingot in Delhi and Mumbai were up on Wednesday in line with LME lead, despite subdued demand.
Prices have been rising for four consecutive weeks. Despite a rise in domestic prices, markets weakened in terms of spreads as demand is low and supply chain hindrances persist. Market uncertainties continue to exist due to lockdowns.
The weekly Davis Index for secondary lead ingot for Mumbai settled at Rs157,200/mt ex-works producer, up by Rs2,125/mt. Shortage of workers is leading to production challenges in the city which is expected to pressure availability. Owing to this, offers for secondary lead ingot remained firm, backed by increase in LME levels. The official three-month LME lead contract on Tuesday settled at $2,236/mt, up by $57 or 2.62pc higher over the week.
Markets weakened as spreads for secondary lead ingot prices in Mumbai narrowed in a week by 0.55pc owing to muted demand. Demand is expected to rise in by end of the month.
The weekly Davis Index for lead batteries (drained) in Mumbai settled at Rs93,283/mt del Mumbai consumer, up by Rs1,708/mt in a week. Index rose as scrap collection has been affected and high LME levels pushed prices higher. The market for this grade weakened as spreads widened by 0.05pc. Lead ingot manufacturers are buying scrap on need basis and in sync with demand from battery makers, the major consumer of secondary lead ingots.
The weekly Davis Index for secondary lead ingot settled at Rs161,138/mt ex-works producer, up by Rs63/mt driven by firm offers. Most offers heard in the city were either flat or slightly higher from the prior week around Rs161,000/mt ex-works producer. The market for the grade weakened as spreads contracted by 1.87pc. Prices are pressured by quiet markets with some participants, especially traders, refusing to deal in these uncertain times.
The weekly Davis Index for lead batteries (drained) on Wednesday settled at Rs94,617/mt del Delhi consumer, up by Rs92/mt driven by LME levels but offset by fickle demand. Delhi market participants noted that impact of lockdown is not yet strong but will worsen until the lockdown is lifted or eased. Spreads for the grade widened by 1.07pc, driven by erratic demand and weak market sentiments.