SMM News: internal and external trends: LME lead shock higher today, as of 15-21 Beijing time, LME lead reported 1825.5 U.S. dollars / ton, up 0.47% a day, has stood on the 5-day moving average. The Shanghai lead main 1906 contract continued to rebound, trading in 16280 to 16596 yuan / ton, closing at 16275 yuan / ton in late trading, up 1.31% from the closing price of the previous day; trading volume of 26292 hands, a daily decrease of 7794 hands; positions of 47260 hands, a daily decrease of 3226 hands. The base difference narrowed to-125 yuan / ton and the Shanghai lead price expanded to 25 yuan / ton from 1906 to July.
Market focus: the Asian dollar index tumbled slightly, now trading at 97.542, down 0.02%, operating at the main EMA Interleaver. During this period, the price of new commercial housing in China accelerated in April, and the price of new commercial housing in Shenzhen and Shanghai rose month-on-month. A spokesman for the US Treasury Department said Mnuchin plans to travel to Beijing in the near future to continue economic and trade talks, and the mood for risk aversion has weakened.
Spot market: on May 16, SMM spot 1 # lead quoted at 16100 to 16200 yuan / ton, the average price is 75 yuan / ton higher than the previous trading day. SMM reported that downstream storage enterprises purchase on demand, at the same time, the current circulation market is limited, the quotation of the holder is strong, in addition, the recycled refined lead discount is narrowed, and some of the downstream demand flows back to the original lead bulk market.
Warehouse receipt inventory: today's Shanghai lead warehouse receipt totaled 18606 tons, a daily decrease of 77 tons; inventory: as of May 15, LME lead inventory was 73700 tons, an increase of 100 tons a day, ending seven consecutive declines. At the same time, lead stocks in Shanghai rose by 3207 tons to 32194 tons in the week ending May 10.
Main position: Shanghai lead main 1906 contract top 20 long position 19094 hands, short position 19213 hands, net clearance is 119, daily decrease 423 hands, long short trading tends to be cautious.
Market research: may 16 Shanghai stock market non-ferrous metals continued to rebound, Shanghai lead also rose, continue to make up for last week's decline. During the period, Sino-US trade war risk aversion continued to digest, it is reported that the United States Mnuchin plans to go to Beijing to continue economic and trade negotiations, the market warmed up. On the spot side, the downstream storage enterprises purchase on demand, the quotation of the holder is strong, in addition, the recycled refined lead discount is narrowed, some of the downstream demand flows back to the original lead, and the trading activity of the bulk market is better. On the technical side, the main force of Shanghai lead broke the 10-day moving average, MACD green column shortened, William index continued to rise, it is expected that the short-term is still expected to concussion on the more. In operation, it is suggested that Shanghai lead 1906 contract can rely on 16000 yuan / ton above the low, entry reference 16170 yuan / ton, stop loss reference 15900 yuan / ton.