SMM News: spot market: recently, Shanghai lead futures market prices continue to strengthen, holders continue to actively quote, the number of quotations increased significantly, and the holder let du Sheng paste water in order to ship, but after days of strong lead prices, downstream storage fear of high and continue to show wait-and-see sentiment, procurement is still dominated by rigid demand. And the renewable refined lead paste has also been further expanded, the delivery of passive traders, there is no market situation is obvious.
Inventory status: yesterday's lead stocks fell 501 tons to 30538 tons compared with the previous trading day. The current inventory of the previous period is still in a relatively high position, and although the current lead prices are showing a strong momentum, but downstream demand is still no obvious signs of recovery, making inventory digestion extremely slow. The current social inventory and the previous inventory total of about 60, 000 tons, compared with the current August contract position of 32344 hands, and in this case, the possibility of pressing positions is also relatively small.
Import profit and loss situation: yesterday, the RMB midpoint rose 66 basis points from the previous trading day to 6.8761, ending the previous three consecutive days of decline, but the current external price is still showing a relatively strong trend, but the internal lead price is finally due to limited demand, so the upward range is still weaker than the external market. At present, the import profit window is still closed.
Price difference between recycled lead and primary lead: yesterday, the price difference between regenerated lead and primary lead expanded to-150 yuan / ton, and the price of lead showed a relatively strong trend in the past two days, but the recovery of downstream demand is still not ideal. Therefore, even if renewable refined lead has a price advantage, it is still unable to attract too many active procurement, and even there has been a further expansion of the price difference between recycled refined lead and primary lead.
Neutral, the price of lead has continued to rise in the past two days, and the carrier has been active in shipping, but the enthusiasm of receiving goods downstream has not shown obvious signs of recovery, and the price difference between recycled lead and primary lead has also further expanded. Therefore, the current operation is still treated with a relatively neutral train of thought. If downstream demand recovers together, thinking can be gradually shifted to caution.
Option operation advice:
Holders with spot holdings can operate by selling call options to collect royalties.
Inventory changes in the last period of demand of downstream storage enterprises. (source: Huatai Futures)