Hither Ingot Price Lifts Lead Scrap in Tokyo

Lead scrap market price increased by 5-10 yen per kilogram around Tokyo when Mitsubishi Materials increased the official lead ingot price by 19,000 yen to 162,500 yen per tonne for domestic shipment in March on Monday. However, the scrap dealers’ shipment is lower level. The market price is 50-60 yen per kilogram for higher grade lead scrap, 25-35 yen for battery electrode scrap and 40-50 yen for type scrap.

Lead settlement at London Metal Exchange rose by US$ 29.5 to $ 1,190 per tonne on Friday from the previous day, which renewed the yearly high lifted by the firm copper price. Japanese official lead ingot price renewed the yearly high by more than 10,000 yen per tonne on Monday while the lead scrap price recovered early December level.

While the lead scrap price advance, the scrap generation worsened and market price is likely to become almost nominal with little actual transactions. The purchase price by secondary lead refineries and type scrap users is around 70 yen per kg for higher grade lead scrap and 55-65 yen for type lead scrap.

The generation of used battery is several ten of percent lower than normal level while the supply usually increases due to higher replacement demand in January-March, a secondary refinery source says. The lead scrap supply could be short in and after spring. But the dealers aren’t willing to increase the offer to secure the used battery when the price could decline under the weak demand.