[record of SMM lead Internal Morning meeting on May 25th] Shanghai lead continued strong shock trend and trading became weaker downstream.

Summary of lead Morning meeting:

Futures market:

Last Friday, Lun lead opened at US $1644 / tonne. In the Asian session, Lun lead fluctuated in a narrow range, with a center of gravity around US $1650 / tonne. In the afternoon, Lun lead broke its position and went down, entering the European period, and the low reached 1612 US dollars / ton at one point. Later, with the opening of domestic trading, Lun lead recovered its decline and finally closed at 1647.5 US dollars / ton, down 0.39% (negative).

Shanghai lead opened at 13935 yuan / ton. At the beginning of trading, Shanghai lead quickly rose to 14200 yuan / ton. After that, it basically fluctuated in a narrow range around 14200 yuan, and finally closed at 14180 yuan / ton, an increase of 0.5%.

Spot fundamentals:

Last week, the production of primary lead enterprises was basically stable, with the exception of Henan, the bulk orders of refineries in other regions were quoted at a discount of 50,150 yuan / ton to the average price of SMM1# lead, while the average price of SMM1# lead in Henan was quoted at a flat price, and the shipments of bulk orders decreased in Henan in the next few days. In the trade market, the supply of goods from the holders is still not much, but the overall feedback from traders on the spot transaction pressure has increased. As of last Friday, the domestic lead common brand lead on the 2006 contract rose 150 yuan / ton; the supply of recycled lead market was stable, as of last Friday, the mainstream quotation of tax recycled refined lead left the factory at an average discount of 200 yuan / ton and above to SMM1# lead, and a few areas to 350 yuan / ton.

On the consumer side, from the feedback of the market, the transaction is weakening and the pace of picking up goods downstream is general, but the operating rate of large enterprises is still high. as of last Friday, the total inventory of lead ingots in the five places of SMM reached 9500 tons, an increase of more than 100 tons compared with the previous period.

Lead price forecast today:

The recent trend of Lun lead is actually weak, relying more on the stabilization of domestic lead prices, and the pessimistic situation in China and the United States over the weekend. Lun lead is closed today, so it is vigilant that Lun lead continues to weaken; Shanghai lead continues to shock a strong trend, and it is possible to continue to go higher in the short term. market views began to exist somersault, consistent bearish end, the need to be cautious high short suddenly entered.

It is expected that the price of SMM1# lead will rise by 75 RMB125 per ton today.