[record of SMM lead internal morning meeting on 28 June]

Summary of the lead morning meeting:

Macro:

The Chinese president met with the Japanese Prime Minister in Osaka on the 27th. The two sides reached a 10-point consensus. The leaders of the two countries agreed to further deepen the integration of interests between the two countries. Strengthen mutually beneficial cooperation in a wide range of fields, such as scientific and technological innovation, intellectual property protection, economic and trade investment, finance, medical care, old-age care, energy conservation and environmental protection, tourism and tourism. On behalf of the Japanese Government, Prime Minister Abe invited our President to pay a state visit to Japan next spring, and our President accepted the invitation in principle.

The monetary policy committee of the central bank pointed out at its regular meeting in the second quarter of 2019 that the RMB exchange rate is generally stable and its ability to cope with external shocks has been enhanced. It is necessary to innovate and improve macro-control, timely and appropriately implement counter-cyclical regulation, and strengthen macro-policy coordination;

In order to enhance the market liquidity of banks' sustainable bonds, support banks to issue sustainable bonds to replenish capital and enhance the ability of financial services to the real economy, the central bank launched the central bank bill swap (CBS) operation on June 27th, with an operation volume of 2.5 billion yuan, a maturity of one year, and a rate of 0.25%.

The NDRC issued a notice on the full liberalization of the power generation plan for operating power users, requiring that the generating capacity of nuclear power units be included in the priority power generation plan, and that all localities should co-ordinate the overall liberalization of the power generation plan for operating power users. The direct benefits are increased transaction efficiency, active trading, increased trading volume, and reduced power consumption costs for large power consumers.

Fundamentals:

The rise of lead in Shanghai is weak, and the quotation of the holder is accompanied by the market, but the shipping enthusiasm of the traders is declining. Among them, Sands and Southern lead in Shanghai market quote 50 yuan / ton for 1907 contract, imported Harbin lead for 1907 contract discount 50 yuan / ton, Jiangsu and Zhejiang area Jijin, Tongguan lead to 1907 contract water 30 to 60 yuan / ton quotation, while the original lead refinery bulk single mainstream quotation for SMM1# lead average price of 50 to 100 yuan / ton, and Jiangsu and Zhejiang areas Jijin, copper crown lead to 1907 contract water 30 to 60 yuan / ton, while the main quotation of the original lead refinery bulk order is 50 to 100 yuan / ton. Recycled lead to maintain deep discount, the average price of SMM1# electrolytic lead discount is about 150yuan / ton; downstream is not optimistic about the future market, continue to wait and see, bulk market transactions are still not significantly improved.

Lead price:

Lun lead continued a strong upward model, technical support Lun lead continued to strengthen; Shanghai lead in recent days, in line with our judgment on lead, today is the most trading day of the week, given the uncertainty of the G20 meeting over the weekend, treat it cautiously today.

The price of SMM1# lead is expected to fall by 50 to 75 yuan per ton today.