[record of SMM lead internal morning meeting on 27 June]

Summary of the lead morning meeting:

Macro:

It is reported that the US merchandise trade deficit widened to a five-month high in May, and the scale of imports rose sharply after the US decided to impose tariffs. These figures may reflect the impact of the race between enterprises and the effective time of the new tariffs. Us business equipment orders rebounded to a four-month high in May, indicating that corporate investment is still increasing despite tensions between the United States and major economic and trade partners.

PetroAmerica rose 2.7% to a new closing high in more than a month as U. S. crude oil stocks plummeted.

The executive meeting of the State Council of China called for a reduction in the real interest rate for financing of small and micro enterprises, and pilot deployment to support the expansion of intellectual property pledge financing and manufacturing credit, so as to strengthen the protection and utilization of intellectual property rights and promote the expansion of employment.

The people's Bank of China has successfully issued two issues of RMB central bank bills in Hong Kong, including one-month central bank bills of 20 billion yuan and six-month central bank bills of 10 billion yuan, with winning interest rates of 2.80 per cent and 2.82 per cent, respectively. This is the first time that the people's Bank of China has issued one-month and six-month RMB central bank bills in Hong Kong.

Our President will leave for Japan today for the G20 summit on Friday.

Fundamentals:

The rise of lead in Shanghai is weak, the quotation of the holder follows the market, and a few begin to downgrade the quotation, among them, Sands and Southern lead in Shanghai market quote 50 yuan / ton for 1907 contract, Jijin, Tongguan and Shuangyan lead in Jiangsu and Zhejiang area quote 20 to 50 yuan / ton for 1907 contract, and send out white goods to 19170 and 19180 contract discount 10 to 20 yuan / ton, while the mainstream quotation for the bulk order of the original lead smelter pastes 50 to 100 yuan / ton to the average price of SMM1# lead. Recycled lead to maintain deep discount, the average price of SMM1# electrolytic lead discount is about 150yuan / ton; downstream is not optimistic about the future market, continue to wait and see, bulk market transactions are still not significantly improved.

Lead price:

After the breakthrough of the lead platform, it is a normal pullback, and the future market should pay careful attention to the support strength of the lower EMA. Shanghai lead continues the operation in the box, the short-term pressure of 16300 is still large, and the lead price in the future still maintains the view of interval concussion.

SMM1# lead prices are expected to be flat to 25 yuan per ton today.