SMM News: internal and external trends: LME lead rose sharply today, hitting a three-month high, rising 0.61 per cent to $1992 per tonne as of 15-21 Beijing time. The Shanghai lead main 1909 contract also rose sharply, trading at 16290 to 16050 yuan per ton within the day, closing at 16275 yuan per ton in late trading, up 1.47 percent from the closing price of the previous trading day, trading volume of 39168 hands, a daily increase of 8972 hands, and positions of 47732 hands, a daily increase of 4544 hands. The base difference was expanded to-150 yuan / ton, and the Shanghai lead price difference narrowed to 10 yuan / ton from 1908 to September.
Market focus: the Asian dollar index fluctuated higher and is now trading at 96.993, up 0.05%. The market data were light today and focused on US retail sales figures in the evening.
Spot market: July 16 SMM spot 1 # lead offer is 16050 to 16200 yuan / ton, the average price is 125 yuan / ton higher than the previous trading day. SMM reported that the enthusiasm of shippers has increased, some of them have been converted to discount quotations, while the downstream battery market consumption is flat, storage enterprises are afraid of high caution, upstream and downstream direct counterpart trading is weak; in addition, due to the expansion of the current base gap, traders have increased their activity to receive goods compared with yesterday.
Inventory: today's Shanghai lead warehouse receipts totaled 31039 tons, a daily decrease of 498 tons; as of July 15, LME lead stocks were at 64550 tons, a daily decrease of 225 tons, down for three days in a row. Meanwhile, lead stocks in Shanghai rose 2141 tons to 2141 tons in the week ended July 12, the highest level in nearly two months.
Main position: Shanghai lead main 1909 contract the first 20 long positions 18214 hands, short positions 19113 hands, net position 899, daily reduction 284hands, long short trading is obvious.
Market research judgment: July 16 Shanghai lead main contract rose sharply, with LME lead higher. During the period has not been suppressed by the dollar index shock, showing that the bullish atmosphere is high, but the current domestic lead downstream consumption is still in the off-season, need to be careful to catch up. Spot, downstream battery market consumption is flat, storage enterprises afraid of high careful mining, upstream and downstream direct counterpart trading is weak. Technically, Shanghai lead main contract MACD green column to red column, 5 days moving average to cross, it is expected that the short-term is still expected to concussion on the more. In operation, it is suggested that the Shanghai lead main 1909 contract can rely on 16100 yuan / ton above the low, enter the reference 16200 yuan / ton, the target concern 16300 yuan / ton.
(source: Rida Futures)