[April 21 SMM lead internal morning meeting record] supply and demand weak Shanghai lead continued shock

Published: Apr 21, 2020 09:36

Summary of lead morning meeting:

Macro:

It is reported that real-time statistics from Hopkins University show that so far, nearly 2.5 million cases of new crown pneumonia have been confirmed worldwide.

For the first time in the history of crude oil futures in New York, oil stocks and the currencies of oil exporters such as the Canadian dollar fell sharply as energy companies ran out of storage space and intensified the market sell-off. As oil prices plummeted, the US bond market sent deflationary risk signals. The US 10-year break-even rate, which measures the average annual inflation over the next decade, fell below 1 per cent for the first time in more than two weeks.

Russia's energy ministry has asked domestic oil producers to cut production by about 20% from their average daily production in February, enabling the Russian government to deliver on its commitments under a global agreement.

The British prime minister resisted pressure to loosen the blockade prematurely, fearing a second peak, which the prime minister's spokesman said would extend the risks to the British economy. The German chancellor also said Germany should not relax the blockade too quickly.

In China, the quotation of LPR in April was "double decline", the one-year variety was 3.85%, the last time was 4.05%, the more than 5-year variety was 4.65%, the last time was 4.75%. [Lido]

Fundamentals:

Shanghai lead weak consolidation, but Jiangsu, Zhejiang and Shanghai area circulation supply is still few, the holder maintains the high water quotation, among them, the Shanghai market Jinsha lead to the Shanghai period lead 2005 contract rises the water 330-380 yuan / ton quotation, the south, the Shuikoushan lead to the Shanghai period lead 2005 contract rises the water 480500 yuan / ton quotation, Wuxi market Shuikoushan lead to the Shanghai period lead 2005 contract rises 450 yuan / ton quotation, the primary lead smelter mainly delivers the bill; In the aspect of recycled lead, the trading of recycled lead becomes weak, the market demand for reduced lead decreases, and the quotation basically fluctuates with the price of lead. Most of the recycled lead containing tax is shipped by discount; the downstream demand is also not prosperous, purchasing on demand, and the transaction activity in the bulk market is general.

Lead price:

Lun lead closed at the Xiao Yang line, but still did not change the overall weakening trend, the short-term overseas market is still expected to be mainly shock weakening; according to the last notice, there will be no night trading since February 3;

SMM1# lead prices are expected to be flat to 50 yuan / ton today.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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[April 21 SMM lead internal morning meeting record] supply and demand weak Shanghai lead continued shock - Shanghai Metals Market (SMM)