LME lead prices soften on weak sentiment despite supply concerns

• LME lead cash prices down 2.7% w-o-w
• Lead stocks rise sharply 14.1% during the week

Lead prices on the London Metal Exchange (LME) weakened in the week ended 6 February amid bearish sentiment from US government shutdown fears and fund withdrawals, despite underlying concentrate supply tightness offering some support.

Price trends

LME lead cash prices fell from $1,932/t on 2 February to a low near $1,904/t on 5 February, before a minor rebound to $1,906/t on 6 February-a weekly drop of 2.7% from prior close. The three-month contract declined from $1,980/t on 2 February to $1,950/t (down 1.5% w-o-w) on 6 February, trading in a $1,950-1,990/t range under pressure.

Inventory analysis

LME lead stocks surged with arrivals, climbing from 204,075 t on 2 February to 232,850 t by 6 February-a sharp weekly increase of 14.1% that capped any upside momentum.

​MCX lead trends (2-6 Feb)

On the MCX, February 2026 lead futures (LEAD 27 FEB 26) declined 1.3% w-o-w, broadly tracking LME cues. Prices traded in the range of INR 188,000-195,000/t during the week. The contract opened at INR 192,300/t on 2 February, touched a weekly high of INR 195,350/t, and gradually softened to close at INR 189,850/t on 6 February. The downtrend was driven by subdued global sentiment, while domestic battery-sector demand remained largely stable. Open interest edged up over the week, indicating fresh positioning despite the price correction.
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SHFE lead trend

The SHFE most-active 2603 lead contract fell 2.1% w-o-w to CNY 16,510/t, fluctuating CNY 16,400-16,990/t on bearish pressures despite low TCs around CNY 450/mt signaling tight domestic supply. SHFE/LME spreads narrowed slightly amid the downturn, with import arb remaining unviable.

Hindustan Zinc advances Zinc-Ion battery technology

Hindustan Zinc Limited, in collaboration with JNCASR, has developed stable zinc-ion battery pouch cell prototypes for large-scale renewable energy storage. Designed for applications like solar power, these batteries offer advantages such as safety, low cost, and abundant raw materials. While further improvements are underway to enhance energy density and cycle life, the development marks a key milestone in India’s indigenous energy storage research and supports the country’s clean energy transition.

Outlook

Lead prices are expected to remain muted in the short term, with macroeconomic cues and inventory movements likely to drive market sentiments. Any sustained recovery would require a slowdown in stock builds or clearer signs of improving risk sentiment.