Summary of lead morning meeting:
Macro:
It is reported that Federal Reserve Chairman Powell said that the Federal Reserve will resume balance sheet expansion, but this should not be seen as quantitative easing. The Federal Reserve will buy Treasury bills and remain open to interest rate policy. This is partly a response to the turmoil in the overnight loan market in September. In addition, the Federal Reserve will consider controlling the yield curve as a new tool to stimulate the sluggish economy. Negative interest rates are not the primary tool or something that may be used;
In September, the core producer price index (PPI) posted its biggest monthly decline in more than four years-0.3%, with expectations and previous values of 0.1%, further suggesting that inflationary pressures are moderate and may provide more room for Fed policymakers to cut interest rates.
A spokesman for China's Ministry of Commerce said it would "take all necessary measures" against the US blacklisting of 28 entities, and the Chinese foreign ministry said it would keep an eye on China's counter-measures against the list of US entities.
Tomorrow, the Federal Reserve will release the minutes of its September meeting, as well as a new round of high-level economic and trade consultations between China and the United States.
Fundamentals:
Driven by the rising trend of Lunlead during the festival, on the first day after the festival, Shanghai lead strongly pulled up, and the holders offered more actively. Among them, the Shanghai market southern lead to the 1910 contract discount 10 yuan / ton to the flat water quotation, Jiangsu and Zhejiang market Jingui lead to the 1910 contract discount 30 yuan / ton to the flat water quotation, at the same time, most of the refineries after the festival have a certain accumulation, one after another into discount shipment, the SMM1# electrolytic lead price discount of 100-0 yuan / ton out of the factory. However, the downstream fear of heights and wait-and-see, the demand for replenishment after the festival is limited, traders ship passively, bulk single market transactions are light; In the aspect of recycled lead, the increase in the purchase price of waste battery is limited, so the smelting profit of the current recycled refined lead smelter is very considerable. According to SMM's rough estimate, the smelting profit of the smelter purchasing waste battery to produce recycled refined lead is more than 1,000 yuan / ton. The refined lead refinery is worried about the future market and is actively shipping one after another, while the high purchasing enthusiasm of downstream storage enterprises is low, in addition to the fact that some of the reserves in front of the festival have not yet been completely consumed, and the overall demand is limited. Resulting in recycled refined lead spread water shipment, today recycled refined lead mainstream transaction price to SMM1# lead average price discount 100-200 yuan / ton factory, individual heard discount 250 yuan / ton transaction.
Lead price:
Lun lead high closing long negative line, suspend the upward trend of Lun lead, there is still technical support, the future attention in the high pressure fall, Lun lead still has the power to rise, if the trend is weak, it is necessary to be careful to run lead high level down; Shanghai lead completed a make-up market yesterday, overnight affected by overseas, the upward trend basically ended, the bottom temporarily pay attention to 17000 support, material support is limited, with the fourth quarter consumption weakening, coupled with refinery profit repair, supply pressure, Shanghai lead wants to strengthen the pressure;
SMM1# lead prices are expected to fall by 100-150 yuan per tonne today.
