Summary of SMM Lead Morning Meeting on July 18, 2023

Futures trading:

LME Lead fluctuated between $2115 and $2120 per ton, but later entered the European session. LME Lead's operating center gradually shifted downwards, and LME lead inventory accumulated over a thousand tons, further dragging LME Lead down, reaching as low as $2090 per ton, and finally closing at $2100 per ton, a decrease of 1.34%, ending the six consecutive positive market.

Overnight, the main 2308 contract of Shanghai Futures Lead was opened at 15700 yuan/ton, and the accumulated short positions for delivery were exhausted. Shanghai Lead stopped falling and gradually rebounded, reaching a peak of 15760 yuan/ton during the period, until the late trading turned weak, and finally closed at 15735 yuan/ton, an increase of 0.19%; Its position reached 86.155 million hands, a decrease of 381 hands compared to the previous trading day.

Today's lead price forecast:

On the macro level, the manufacturing index of the New York Fed in the United States fell in July, but inflation further cooled. China's GDP grew 6.3% year on year in the second quarter. In June, the retail sales of consumer goods grew 3.1%, the added value of industries above designated size increased 4.4%, the investment in real estate development fell 7.9% year on year in the first half of the year, the investment in fixed assets investment increased 3.8% year on year, the private investment decreased 0.2%, and the urban unemployment rate was 5.2%.

In terms of fundamentals, the delivery of lead between Shanghai and Shanghai ended yesterday, and domestic lead ingot inventory accumulated as scheduled. At the same time, LME lead inventory increased by over a thousand tons, dragging down the short-term lead price trend. However, the peak domestic lead consumption season in the third quarter is expected, and the maintenance of original lead delivery brands continues. The current market circulation of goods is limited, and refinery shipments are biased towards premium trading. It is expected that the short-term lead price will remain strong and volatile.

More popular news

Exclusive: China's Metals Output in June

China To Restrict Exports Of Critical Chipmaking Metals Gallium And Germanium In Escalated Tech War

Chief Economist At S&P Global Market Intelligence Warns Of US Recession In H2 2023

Daily LME Base Metals Inventory Changes (July 14)

SHFE And LME Aluminium Closed With Gains, High Interest Rates And Months Of Sluggish Consumer Spending Have Raised Concerns About US Economic Outlook, Market Pining Hopes On Stimulus Policies In China

China's June Official Manufacturing PMI Contradicts Caixin PMI