The weekly Davis Index for US heavy soft lead rose by 1.3¢/lb to 63.4¢/lb delivered US consumer on Wednesday amid increasing demand, more availability of scrap, and rising LME lead prices.
Lead scrap and batteries buyers have returned to the market and volumes are at near-normal levels, according to market participants. Moreover, demand for lead scrap and batteries exports continued its upward trend for the second straight week as buyers from India and the Middle East returned to the market after almost three months of COVID-19-related lockdowns.
The increased domestic and export demand also resulted in the weekly index for mixed hard lead rising by 3¢/lb to 60¢/lb delivered on Wednesday.
The index for US whole undrained lead batteries remained relatively flat during the week, rising by two-tenths of a penny to 32.7¢/lb delivered US consumer on Wednesday, as volumes returned to the lead acid batteries replacement market.
The Davis Index for lead ingot premiums, however, fell by 0.9¢/lb to 8¢/lb under the three-month LME lead contract amid rising volumes and improved LME lead prices.
The official three-month LME lead contract closed Wednesday at $1,775/mt, up by $57/mt from $1,718/mt on June 3. Scrap dealers expect improved volumes to bring more volatility to LME lead in the near term.