Summary of the lead morning meeting:
Macro:
It is reported that after issuing an ultimatum to meet at the G20 summit, the US president put renewed pressure on Beijing, pointing out that he would rather not reach an agreement unless he returned to the previous consensus. Other US officials are also playing down the possibility of a deal at the G20.
The US president continued to fire on the Fed, attacking the Fed for its high interest rates and complaining about the "devaluation" of the euro and other currencies against the dollar.
The core producer price index rose at its slowest pace in more than a year in May, suggesting inflationary pressures remain low and may intensify calls for the Fed to cut interest rates.
In response to a reporter's question on the "Circular on the issuance of Special Local Government Bonds and supporting Project financing work" issued by the Central Bank, the Ministry of Finance, and other ministries and commissions, the relevant departments will continue to supervise various localities to further speed up the progress of bond issuance and use, promote the expansion of effective investment, and play a prying role in private investment, in accordance with the decision-making arrangements of the CPC Central Committee and the State Council. To promote the smooth and healthy operation of the economy;
The central bank launched 10 billion yuan reverse repo operation yesterday, because 60 billion yuan reverse repo expired yesterday, achieving a net withdrawal of 50 billion yuan;
Ride Federation: retail sales of broad passenger cars in China fell for the 12th consecutive month compared with the same period last year. In May, the cumulative sales of narrow passenger cars was about 1.582 million units, up 4.8% from the previous month and down 12.5% from the same period last year.
China's inflation figures for May are due today, with CPI rising to 2.7 per cent from 2.5 per cent in April, reflecting higher pork and vegetable prices, while PPI is expected to fall slightly to 0.6 per cent from 0.9 per cent in April, dragged down by lower commodity prices.
Fundamentals:
Shanghai period lead shock upward, but the impulse energy is limited, the holder every high shipment, quotation water basically stable, of which, Shanghai market southern lead on 1906 contract water 30 60 yuan / ton quotation, Mulun lead to 1906 contract water 50 yuan / ton quotation, Jinsha lead to 1906 contract water 80 yuan / ton quotation, Jiangsu and Zhejiang market Wanyang lead to 1907 contract water 20 yuan / ton quotation, subsequent actual transaction appears to 1907 contract discount 30 yuan / ton, the price of Jinsha lead to 1906 contract is 80 yuan / ton, Jiangsu and Zhejiang market Wanyang lead to 1907 contract liter water 20 yuan / ton, the subsequent actual transaction appears to the 1907 contract discount 30 yuan / ton, On the other hand, the mainstream quotation of the bulk order of the original lead refinery pastes the average price of SMM1# lead to 50 yuan / ton to flat water. In terms of recycled lead, with the end of environmental protection supervision and the accumulation of superimposed Dragon Boat Festival holidays, the supply of reduced lead market has been alleviated, and the mainstream quotation of recycled refined lead has been expanded to 150 to 100 yuan / ton for SMM1# electrolytic lead, and a few even 200 yuan / ton for electrolytic lead. However, the downstream storage enterprises are mainly based on rigid demand procurement, coupled with the expansion of recycled lead discount (150 to 100 yuan / ton of electrolytic lead), partial demand diversion, single market transactions are weak.
Lead price:
Lun lead opened the upward channel in the low position, paying close attention to the pressure of US $1900 in the near future. If it continues to strengthen, it is possible to recover the US $2000 mark above it. Shanghai lead trend is far weaker than Lun lead, and the upward force is obviously suppressed by short positions. If the lead falls in the short term, the downward exploration range of Shanghai lead may be greater than the rebound height of this round.
The price of SMM1# lead is expected to fall by 50 yuan per ton today.
