SMM Network News: spot market: yesterday Shanghai lead prices continue to show a volatile situation, yesterday when the delivery date. The holder rises pastes the water quotation to follow the market, the market high rising water quotation is relatively few. However, downstream demand is still not strong, battery enterprises are still mainly rigid demand procurement. Activity in the bulk market is still limited.
Inventory status: the value of delivery yesterday, the previous period of lead stocks increased by 701 tons to 31537 tons compared with the previous trading day. The current inventory in the previous period is still in a relatively high position, and inventory digestion is extremely slow due to the continued dismal demand downstream. Under such circumstances, the lead price may still be difficult to form a pattern of continuous upward attack in a short period of time. There is a need to continue to pay attention to the recovery of downstream demand in the future.
Import profit and loss situation: yesterday, the RMB midpoint fell 15 basis points to 6.8677 compared with the previous trading day. At present, the external price is still showing a relatively strong trend, while the inner market is dominated by concussion, which further aggravates the current import loss. And downstream demand has yet to show clear signs of recovery, and in the face of dismal demand, even if the future import profit window is open, there is unlikely to be a large inflow of foreign inventories.
Price difference between recycled lead and primary lead: from the second half of last week to yesterday, the price of recycled lead and primary lead narrowed to-100 yuan / tonne, but this was mainly due to the high price adopted by recycled lead companies at a loss in production, not due to a recovery in downstream demand.
Neutral, lead prices rose last week driven by the outside market, but the corresponding prices of waste batteries also rose. However, the situation in which demand continues to remain weak is also maintained, so it is still recommended to treat it as a high-sell and low-suction train of thought in the current operation.
Inventory changes in the last period of demand of downstream storage enterprises. (source: Huatai Futures)