Domestic lead scrap and ingot prices inched slightly up as demand continues to be even across markets with a return of buying by consuming sectors. Prices increased by nearly a percent in a week.
Domestic lead ingot and scrap prices jumped in Delhi and the market improved on the back of improving demand. The weekly Davis Index for secondary lead ingot for Delhi, Wednesday, settled at Rs175,340/mt ($2,384/mt) ex-works producer, up Rs840/mt driven by a jump in offers amid a slight improvement in demand. The Davis Index for lead batteries (drained) settled at Rs102,975/mt del Delhi consumer, up by Rs885/mt as demand from secondary lead ingot producers was strong.
The official three-month LME lead contract on Tuesday settled at $2,274/mt, slightly down by $3.5/mt from a week ago. Short supply of lead scrap and improvement in demand pushed offers up, albeit, marginally in both Delhi and Mumbai.
The Davis Index for secondary lead ingot for Mumbai settled at Rs173,983/mt ex-works producer, up by Rs483/mt from a week ago. Battery scrap prices also increased in almost the same proportion in Mumbai compared to the hike in secondary lead ingots. The weekly Davis Index for lead batteries (drained) on Tuesday settled at Rs103,067/mt del Mumbai consumer, up by Rs434/mt.
Delhi lead scrap markets strengthened in terms of spreads with more trade intensity as September is cyclically the first month for lead demand ahead of the festive season. Demand for industrial batteries remains strong, while demand from autos is expected to pick up slowly, given the impact of chip crunch on vehicle production.
Markets weakened in Mumbai this week compared to the prior as demand was slightly pressured with consumers shying away from the high offers for secondary lead ingots.