Global lead short-term outlook January 2022

Another quiet month with little change in the lead price, few meaningful influences on the markets and the LME price broadly tracking the dollar rate for most of January. There was some surprise - and concern - coming from the Chinese announcement that import duties on lead scrap would be zeroed, raising fears among US smelters that their raw material supplies might be pillaged again, as it has been by Korean buyers. Refined lead long-term supply contracts are now completed, and with healthy increases in premia. But much of this extra margin has been eroded by rises in energy costs and other inflationary pressures.