[minutes of SMM Morning meeting] Shanghai lead rebounded slightly and recycled lead was afraid of falling downstream.

2020.7.21

Summary of lead Morning meeting:

Futures market:

Overnight, Lun lead opened at US $1815.5 / tonne. During the Asian session, Lun lead concussion fell, reaching a low of US $1804 / tonne. After entering the European session, Lun lead rebounded and followed Nonferrous lead to strength, finally trading at US $1829 and / t, up 0.85 per cent. (lidocaine)

Overnight, Shanghai lead opened at 14870 yuan / ton. Shanghai lead rose slightly at the beginning of the day, and then basically fluctuated near the daily moving average. During this period, the high reached 14960 yuan / ton, and finally reported at 14890 yuan / ton, an increase of 0.64%. (lidocaine)

Spot fundamentals:

Shanghai market Mulun lead price 50 yuan / ton price for Shanghai lead 2008 contract, Jiangsu and Zhejiang market Muleng, Wanyang, Yuteng lead price 50 yuan / ton for Shanghai lead 2008 contract, imported KZ lead price for Shanghai lead 2008 contract level quotation, Henan Jinli, Wanyang lead average price discount 50 yuan / ton to Pingshui (trader); Henan Minshan to SMM1# lead average price flat quotation. Lead weak shock, coupled with the increase in the supply of goods in circulation, the holder is actively quoted for shipment, the price rise is significantly lower than last week, but downstream only just need to purchase, and more bargaining, the transaction in the bulk market is still more general. In terms of recycled lead, the price of waste batteries is still strong due to tight supply. The price of reduced lead has fallen sharply with the lead price, and the discount on recycled refined lead has shrunk somewhat. The average price discount of SMM1# lead in mainstream quotations is 200mur300 yuan / ton, and the profits of recycled lead refineries are shrinking. There is a general sentiment of being reluctant to sell, while the downstream is afraid of falling cautiously, and the trading is light.

Lead price forecast today:

Lun lead 20 moving average near the support, short-term is expected to be mainly shock consolidation, follow-up attention to the overall market macro environment changes. Shanghai lead stopped falling and stabilized, with the arrival of peak season expectations, lead prices short power is not strong, short-term consolidation is expected to continue to strengthen.

The price of lead in SMM1# is expected to rise by 100,150 yuan per ton today.