SHANGHAI, Feb 7 (SMM) - LME lead prices dropped during the Chinese New Year (CNY) holiday. As of February 4, LME lead closed at $2210.5/mt, down $39.5/mt or 1.76% on a weekly basis. The overseas demand was moderate during the holiday, and LME lead inventory dropped to a low in three months. However, domestic consumption stagnated in this period, and the supply side is likely to see greater increases when compared with 2021, suppressing LME lead.

After the CNY, the primary and secondary lead smelters gradually resumed the production, and the downstream battery companies have also started their restocking. Nonetheless, the first two quarters are the traditional low for secondary lead, hence the demand is unlikely to improve significantly.

On the whole, post-CNY holiday lead prices are likely to rally though slightly.