Lead Scrap Market Price in Potential Upsurge, Tokyo

Lead scrap market price kept flat with potential increase around Tokyo on Tuesday. The market price is expected to surge on or after July 1 since lead market price maintains stable at London Metal Exchange (LME) and Japanese official lead ingot price is forecasted to be revised up. Secondary lead smelters, the scrap consumers, were basically in wait-and-see mood and scrap trading was inactive on Tuesday of the month end.

LME lead spot price was US$ 1,828 per tonne on June 28, US$ 46 higher than the price along which Mitsubishi Materials had previously revised its lead ingot selling price, Japanese market indicator. Mitsubishi Materials is expected to set the ingot selling price unchanged at 211,000 yen per tonne or revise up slightly on July 1.

The price is about 6,000 yen higher than the monthly average of 205,100 yen in June even if the price is unchanged. Consequently lead scrap and secondary lead ingot prices should surge along the indicator.

Secondary lead smelters currently pay 110-120 yen per kilogram for high grade lead scrap. Scrap generation has maintained stagnant for several months. The supply and demand balance is tightening. Some smelters around Tokyo said they are willing to pay 125 yen for a large-lot and high-grade scrap even at the end of the month.