Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian domestic secondary lead ingot prices rose marginally over the week by Rs200-400/mt ($2-5/mt) and are expected to rise further on LME lead gains, said smelters. The official three-month LME lead contract rose by $64/m or 3pc to $1,916.5/mr on Tuesday from the week prior. 


The Davis Index for secondary lead ingot in Delhi Wednesday rose by Rs269/mt and settled at Rs141,500/mt ex-works producer from the earlier week. Increased offers pushed the index up as smelters raised prices in line with LME gains and gradually improving demand. Markets for secondary lead ingot in Delhi, however, weakened despite a rise in domestic prices as spreads narrowed by almost 3pc from the prior week driven by higher LME. Prices in the domestic market failed to increase in line with LME, resulting in weaker markets. Smelters in Mumbai and Delhi both raised their offers and several deals occurred in the week on higher demand from battery makers in the country. 


The Davis Index for secondary lead ingots in Mumbai on Wednesday rose by Rs448/mt to Rs141,833/mt ex-works producer driven by high offers amid improved demand from traders and battery makers in central and southern India. Battery makers have increased procurement as the demand from the replacement market as well as original equipment manufacturers improved during the week. 


Several Indian auto lead manufactures plan to ramp up production on improved auto sales in July. India’s auto sales are expected to rise on festive demand during the next few months. These positive sentiments supported lead prices in the country despite an increase in COVID-19 infection and heavy rain in many parts of India. The market for secondary lead ingot in Mumbai weakened as spreads contracted by 3pc from the prior week. 


The Davis Index for lead batteries (drained) in Delhi Wednesday settled at Rs78,700/mt del consumer, down by Rs800/mt on thin trades. Traders expect prices to rise next week on improved demand from smelters. In Mumbai, prices have risen higher relative to Delhi. The Davis Index for lead batteries (drained) in Mumbai on Wednesday settled at Rs80,500/mt del consumer, up by Rs1,571/mt on firm trades compared to the prior week. The market for drained lead batteries in both Delhi and Mumbai weakened as spreads widened by approximately 3pc and 1pc, respectively. 


Smelters are enjoying a good margin as secondary lead ingot prices are climbing faster than raw material price, i.e, drained lead batteries. If LME maintains its current levels or rises further, domestic prices would increase on global cues. There is ample supply of raw material which might keep drained battery prices in check but prices of remelted lead and refined lead are likely to rise in the coming weeks, said Mumbai-based smelter. 


Industrial activities in Mumbai might slow down amid heavy rains, waterlogging and logistics delays, said recyclers. But they are confident that the increase in demand will support prices in August as there is a shortage of ingots. 


Primary lead prices in India rose by Rs4,100/mt on August 11 from a week ago shadowing LME gains. The official three-month LME lead rose by $103/mt on Tuesday to $1,916 from its one-month low on July 27. 



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