Lead Scrap Market Price Downs by 5-10 Yen/kg, Tokyo

Market price of lead scrap decreased by 5-10 yen per kilogram around Tokyo on Monday when Japanese official lead ingot price was revised down by 23,000 yen to 156,000 yen per tonne. The market price is 50-60 yen per kg for high grade scrap, 25-35 yen per kg for electrode plate scrap, 40-50 yen per kg for typographic lead scrap and 15-20 yen per kg for low grade scrap.

Lead settlement at London Metal Exchange, the market indicator, hit the yearly bottom at below US$ 1,100 per tonne on 27 November. LME lead price continued to decrease on 28 November. Japanese official lead ingot price reflected the overseas market decline.

Scrap dealers had expected the down revision of Japanese official ingot price. There was no noticeable confusion among dealers. However, dealers are concerned that scrap generation might decrease more than present. A source of Japanese secondary lead smelter said scrap supply and demand is currently balanced because of the weak demand but the supply would severely tighten if the generation maintains as low as present.

Secondary lead smelters are seeking special high grade scrap or used battery, of which they can scarcely procure enough volume. On the other hand, the demand is weak for high grade scrap or typographic scrap since many makers hold surplus inventories of these scrap.