[October 25 SMM lead internal morning meeting record] Lun lead continued to brush the new high to drive the Shanghai lead to fall and return to rise.

Summary of lead morning meeting:

Macro:

It is reported that the ECB left its policy unchanged as expected on Thursday, but remained open to more stimulus measures as the eurozone economy continued to be affected by the global economic turmoil. ECB President Draghi said there was still room for further policy easing, telling his successor that in the face of deteriorating economic prospects and little government financial support, it would continue to support the euro zone economy and "never give up."

British Prime Minister Johnson called for a general election on December 12 to break the deadlock of Brexit, admitting for the first time that he could not lead Britain to leave the EU by next week's deadline, breaking his promise that "if you do not succeed, you will become benevolent."

Orders for non-defence capital goods, excluding aircraft, fell 0.5 per cent month-on-month in September as demand for transport equipment, cars and parts, computers and electronics fell, while core capital goods orders rose 1.0 per cent from a year earlier, the Commerce Department said. New orders for capital finance fell more than expected, and shipments also fell, indicating that corporate investment is still weak under the influence of the US-China trade war.

Initial jobless claims fell unexpectedly last week, indicating that the job market remains tight, despite slowing hiring and economic growth. The Labor Department reported a 6000 drop in initial jobless claims for the week on Oct. 19, to a seasonally adjusted 212000.

The Federal Reserve Bank of New York has increased the amount of money it can provide to the overnight lending market to inject more liquidity into the banking system because of the growing demand for daily liquidity by companies. these companies want enough cash to meet seasonal funding needs.

Fundamentals:

Shanghai period lead weak downward, the holder quotation along with the market, among them, the Shanghai market Jinsha lead to the 1911 contract discount 20-10 yuan / ton quotation, the shower, the southern lead to the 1911 contract discount 30-20 yuan / ton quotation, the white goods can discount 5040 yuan / ton, the primary lead refinery is mainly long single, some loose orders are quoted to the SMM1# lead average price discount 150-100 yuan / ton; As for recycled lead, due to the limited smelting profits of reduced lead, the actual transaction price of reduced lead fluctuates very little today, and the profits of refineries purchasing waste batteries to produce recycled refined lead are still optimistic, coupled with the weakening of consumption, resulting in the maintenance of deep discount of recycled lead; downstream storage enterprises receive goods on demand, but the price advantage of recycled lead is still more significant, storage enterprises have a higher preference for it, and the overall market transaction is still limited.

Lead price:

Lun lead closed at the Xiao Yang line, continuing the rising trend, and the technical side to maintain the long market, there is the possibility of continuing to strengthen in the day; Shanghai lead temporarily closed the Xiao Yang line, stopped falling and rose slightly, but the 5-day moving average still maintained a downward trend. Within the day, Shanghai lead, which has been boosted by lead, will continue to maintain the current level of stability.

SMM1# lead prices are expected to be flat today.