Summary of lead morning meeting:
Macro:
It is reported that the OPEC+ will hold an emergency meeting on April 9 to discuss the issue of production reduction. It is reported that Russia is preparing to cut crude oil production by 1.6 million barrels per day. Algeria expects the OPEC+ production reduction to reach 10 million barrels per day. [Lido]
Oil demand in India, the world's third-largest consumer of crude oil, plunged 70 per cent, with Goldman Sachs warning that even a global production cut of 10 million barrels a day would not be enough to support oil prices above current levels.
The British prime minister, who is still in the intensive care unit, has improved, but the situation in the UK has become more serious, with a record number of deaths in one day, officials familiar with the matter said. Britain is likely to extend the blockade for several weeks.
WTO: global trade is likely to fall more sharply in 2020 than at any time in post-war peacetime. Pessimistically, the volume of global merchandise trade could fall by as much as 32% this year. [bearish]
Treasury Secretary Mnuchin said the Fed will launch a loan program for medium-sized companies this week; Democrats want the next stimulus bill to be at least $500 billion, including a $250 billion small-business bailout.
Overnight US economic data: the Bloomberg Consumer comfort Index fell the most last week to its lowest level since October 2017, while the home loan application index fell last week to its lowest level since 2015, the fourth consecutive week of decline.
Germany's five largest research institutes predict that Germany's economy shrank by nearly 10 per cent in the second quarter, more than twice as much as at the height of the financial crisis; the Merkel government approved stricter rules on foreign mergers and acquisitions to strengthen the protection of German companies from foreign acquisitions; the Swiss government warned that at worst, the economy could shrink by 10.4 per cent this year; the Australian parliament approved a record $80 billion jobs rescue plan; Canada's prime minister says March's employment data will be very difficult, and economists expect Canada to lose a record 500000 jobs in March.
Hong Kong announces an "unprecedented" HK $137.5 billion outbreak relief programme, including a HK $80 billion employment security scheme, which will subsidize 50 per cent of the wages of affected employees for a period of six months; HKMA: 50 per cent reduction in reserve requirements will take effect on 8 April;
China passenger Federation: retail sales in the passenger car market picked up steadily in March, with average daily retail sales shrinking to 24% in the fourth week of the month from a year earlier. [Lido]
Fundamentals:
The rising momentum of lead in Shanghai period is insufficient, but the supply of warehouse orders in the market is less, and the holders maintain high water quotation. Among them, Shanghai market Jinsha lead to Shanghai lead 2005 contract up 350-370 yuan / ton, Jiangsu and Zhejiang market Shuikoushan lead to Shanghai lead 2005 contract up 350-370 yuan / ton, the primary lead smelter is mainly long single; In the aspect of recycled lead, the purchase price of waste battery is easy to rise but not fall, the operating rate of small reduced lead refinery is warmer, and the market demand is better. In addition, it is heard that there is a small discount quotation for refined lead containing tax in some areas; at the same time, the downstream is purchased on demand, and part of the demand flows to recycled lead, and the transaction in the bulk market is limited.
Lead price:
Lun lead still did not break through the high level of the platform, the short-term expected to shock consolidation; according to the last notice, there will be no night trading from February 3;
SMM1# lead prices are expected to be flat today.
