Metals News
[agency Review] lead prices have rebounded and the mood of holding up prices is more obvious.
translation
09:26AM
Source:Huatai futures
The content below was translated by Tencent automatically for reference.

SMM net news: spot market: yesterday Shanghai lead price showed a small recovery momentum after the bottom, and from the situation of the holder quotation, it is mostly to raise the price of the attitude of raising the price. In addition, the recycled lead and the original lead paste water are also narrowed, the price advantage is greatly weakened, and this makes some of the procurement backflow to the original lead, some battery enterprises inquiry is positive, but the actual bulk transaction activity is still relatively limited.

Inventory situation: yesterday's lead inventory fell 428 tons to 31301 tons compared with the previous trading day, the inventory level is still high, although the order of battery enterprises has improved, but it has not yet been reflected in the recovery of raw material procurement of storage enterprises, so the consumption of lead inventory is not very obvious. Such inventory levels are also less realistic for lead varieties.

Import profit and loss: yesterday's RMB midpoint fell 229 basis points to 6.9225 compared with the previous trading day when the US dollar rose strongly, although in terms of internal and external lead prices, volatility was relatively limited. The import earnings window is still closed. However, at present, the finished product inventory of downstream battery enterprises is gradually being consumed, and battery orders are also showing a more obvious improvement. If the order situation of battery enterprises continues to improve, thus leading to the purchase of raw materials and further upward attack on lead prices, the gradual opening of the profit window for domestic lead imports will not happen in the future.

Price difference between recycled lead and primary lead: the price difference between regenerated lead and primary lead was maintained at-75 yuan / ton yesterday, and it has been mentioned many times before that the continuous narrowing of the price difference between regenerated refined lead and primary lead may be a harbinger of a gradual recovery in downstream demand. At present, the order of battery enterprises has recovered, but for the time being, it has not yet been transformed into a recovery of purchasing by storage enterprises. But if this continues, there is a better chance that demand will be better than in August.

Operation recommendation: unilateral: neutral

Arbitrage: suspension

Option strategy: selling false value bullish

Future focus:

Whether the continuous improvement of electric bicycle battery consumption can be gradually transformed into an increase in the purchase of storage enterprises.

 

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