[SMM lead Internal Morning meeting record on May 12] the spot market discount expands and the Shanghai lead broken platform becomes stronger.

Published: May 12, 2020 09:23

Summary of lead morning meeting:

Futures disk:

Overnight, Lun lead opened at $1645 / ton, in Asia, Lun lead in the first line of $1650 operation, entered the European period, Lun lead accelerated upward, to $1675 line after the pressure fell back, near the end of the day, Lun lead led by Shanghai lead accelerated upward, finally reported at $1675 / ton, up 1.76%; Shanghai lead opened at 13895 yuan / ton, accelerated entry of funds at the beginning of the session, Shanghai lead quickly rose to 14305 yuan / ton high, the overall trend is strong, finally reported at 14280 yuan / ton, up 3.03%.

Spot fundamentals:

Lead in Shanghai period fell weakly, and due to the increase of circulation supply in spot market, the discount between primary lead and recycled lead factory was expanded (to SMM1# lead average price). Among them, Jinsha lead to Shanghai lead 2006 contract rose 260300 yuan / ton quotation, Wuxi market southern lead to Shanghai lead 2006 contract rose 250-280 yuan / ton quotation, primary lead smelter mainly handed over long order; Recycled lead, waste battery quotation is difficult to follow the lead price weakening, recycled lead market trading in general, among them, including tax recycled lead mainstream transaction price of SMM1# lead discount 150,200 yuan / ton factory, some areas quoted to the SMM1# lead average discount 250yuan / ton and above, compared with the beginning of last week to expand; downstream just need to bias to this kind of source, the holder quotes water to cut half compared with last week, still get part of the deal.

Today's lead price forecast:

Lun lead technical stability, followed by the test of 40-day moving average pressure; overnight Shanghai lead 2006 contract to increase the position of more than 4000 hands, the current domestic lead ingot inventory is low, there is a short-term capital soft position risk, technically break through the platform is expected to strengthen in the short term probability;

SMM1# lead prices are expected to rise 250-300 yuan per ton today.

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