Jinyuan Futures: recently, Shanghai lead fluctuates violently, and the fundamentals are weak to exert pressure.

Published: Mar 11, 2022 09:18
Shanghai Changchi Hongyang lead 15080 yuan / ton, 40 yuan / ton discount to Shanghai lead 2204 contract. Downstream enterprises purchase on demand for bargains, the enthusiasm of inquiry is better, and the trading activity of bulk order market is slightly better. LME inventories were flat at 39250 tonnes yesterday.

Spot market: Shanghai Changchi Hongyang lead 15080 yuan / ton, discount for Shanghai lead 2204 contract 180 yuan / ton; Jiang Copper, Copper Guan 15220 yuan / ton, 40 yuan / ton for Shanghai lead 2204 contract. Lead concussion in the future goes down, the price of the holder follows the market, the downstream enterprises purchase on demand at every bargain, the enthusiasm of inquiry is good, and the trading activity of the bulk market is slightly better. LME inventories were flat at 39250 tonnes yesterday. From a fundamental point of view, domestic processing fees remained low in March, while import processing fees fell month-on-month. Recently, the production of primary lead smelter has been stable, and the start-up has picked up steadily, but the shortage of raw materials limits the production of primary lead. In terms of recycled lead, due to the implementation of the fiscal and tax policy in March, raw material waste batteries are quoted with tax and the price is high, the problem of recyclers obtaining VAT invoices is expected to take a long time to solve, and the production and storage of enterprises may be limited after raw material consumption. The production of downstream storage enterprises has increased steadily, but lead batteries have entered the traditional off-season and lead prices are high. On the whole, the current supply side is affected by the shortage of raw materials and fiscal and taxation policies, and the supply increment is limited, but downstream storage enterprises have entered the off-season, and it is difficult to boost demand. In addition, when the current price gap continues to expand, enterprises are active in delivery, and social inventories continue to increase. Limit the driving force of lead price rise. Recently, the market is controlled by funds, and the futures price fluctuates violently, but under the background of weak fundamentals, the futures price is still weak.

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Copper Futures Volume Drops Sharply
17 mins ago
Copper Futures Volume Drops Sharply
Read More
Copper Futures Volume Drops Sharply
Copper Futures Volume Drops Sharply
Copper futures trading volume dropped sharply, signaling reduced participation and cautious sentiment.
17 mins ago
Africa Pilots Sustainability Bond for Copper Supply Chains
19 mins ago
Africa Pilots Sustainability Bond for Copper Supply Chains
Read More
Africa Pilots Sustainability Bond for Copper Supply Chains
Africa Pilots Sustainability Bond for Copper Supply Chains
Africa is piloting a sustainability bond to formalize artisanal copper mining, improving supply stability and ESG outcomes.
19 mins ago
IFC and First Quantum Signed Copper Ore Agreement; Overnight LME Copper and SHFE Copper Both Closed Higher [SMM Copper Morning Meeting Minutes]
26 mins ago
IFC and First Quantum Signed Copper Ore Agreement; Overnight LME Copper and SHFE Copper Both Closed Higher [SMM Copper Morning Meeting Minutes]
Read More
IFC and First Quantum Signed Copper Ore Agreement; Overnight LME Copper and SHFE Copper Both Closed Higher [SMM Copper Morning Meeting Minutes]
IFC and First Quantum Signed Copper Ore Agreement; Overnight LME Copper and SHFE Copper Both Closed Higher [SMM Copper Morning Meeting Minutes]
SMM Morning Meeting Summary: Overnight, LME copper opened at $12,398/mt, dipped to a low of $12,280/mt early in the session, then the price center rose to test a bottom at $12,755.5/mt, and finally moved sideways to close at $12,705.5/mt, up 3.06%, with trading volume at 28,000 lots and open interest at 294,000 lots, down 357 lots from the previous trading day, mainly driven by bears reducing positions. Overnight, the most-traded SHFE copper 2605 contract opened at 98,080 yuan/mt, touched a high of 98,500 yuan/mt early in the session, then the price center fluctuated lower to test a bottom at 97,890 yuan/mt, and finally closed at 98,330 yuan/mt, up 0.11%, with trading volume at 33,000 lots and open interest at 178,000 lots, down 3,110 lots from the previous trading day, mainly driven by bears reducing positions.
26 mins ago
Jinyuan Futures: recently, Shanghai lead fluctuates violently, and the fundamentals are weak to exert pressure. - Shanghai Metals Market (SMM)