[October 11 SMM lead internal morning meeting record] recycled refined lead to maintain the downstream consumption demand of deep discount water is mainly recycled refined lead.

Summary of lead morning meeting:

Macro:

It is reported that the leaders of the Sino-US negotiations held their first meeting since the end of July on Thursday, and business groups were optimistic that China and the United States might be able to find enough common ground to postpone the US plan to raise tariffs on China, which was scheduled to begin next week. An American Chamber of Commerce official briefed by China and the United States said that despite growing friction between the two world's largest economies, the two sides are still likely to reach a lower-level "preliminary outcome" agreement on issues such as exchange rate and copyright protection.

Brexit is also in the dark, with British and Irish leaders agreeing after constructive talks that there is a potential path to the Brexit agreement;

The US consumer price index (CPI) fell by 0.1 per cent in September, with core inflation falling, supporting expectations that trade tensions posed a risk to the economy as the Fed cut interest rates for the third time this year in October. Initial jobless claims fell unexpectedly to a three-week low last week, and improvements in the economic and shopping environment pushed the consumer comfort index slightly higher last week.

Barkin, secretary general of the Organization of Petroleum Exporting countries (OPEC), said further cuts in oil supplies were one of the options considered by the OPEC and its allies at their December meeting, as OPEC estimates show that global economic growth will slow and demand will fall next year. "this meeting will make appropriate and strong positive decisions that will bring stronger and more continuous stability to us in 2020," Barkin told reporters in London. "all options are possible," he said when asked about the prospect of further production cuts. "

Fundamentals:

Shanghai lead continues to be weak, the holder quotation goes with the market, among them, Shanghai market Jinsha, southern lead to 1910 contract flat water to rise 20 yuan / ton quotation, Jiangsu and Zhejiang market Jinli, Wanyang, Jingui lead to 1910 contract flat water quotation, white goods can be discounted 20-10 yuan / ton, at the same time, the mainstream transaction of primary lead refinery to SMM1# lead average price to 150 yuan / ton; In the aspect of recycled lead, with the suspension of production in Taihe Industrial Zone of Anhui Province, and the influence of careful mining by downstream storage enterprises, the tight supply of reduced lead market has been alleviated. At the same time, due to the relatively limited smelting profits, coupled with the pessimistic expectations of the future market, most of them sell fixed production, and the mainstream transaction price of tax recycled refined lead market maintains deep discount. Due to the deep sticking impact of recycled refined lead, the rigid demand downstream mostly flows to recycled lead, and traders ship more passively.

Lead price:

Lun lead in the high shock consolidation, technical support continues to strengthen, focusing on the progress of Sino-US trade negotiations; Shanghai lead along the five-day line slowly upward, but the overall trend is weak, the market buying momentum is not strong, if the lead pullback, Shanghai lead has the possibility of breaking the position down;

SMM1# lead prices are expected to be flat today.