News summary
The main futures price of Shanghai lead fluctuated this week, influenced by the Fed's eagle-looking tone. On the supply side, production reduction in primary lead and environmental protection inspections have pushed prices high, and the operating rate of recycled lead refineries has rebounded but still needs to be observed. In the off-season of demand, the spot market has gradually improved. It is recommended to trade PB2407 contracts in shock and pay attention to risk control.
Newsletter text
[Shanghai lead futures prices fluctuated upward this week, and market transactions became active.]
The Shanghai lead market was active this week, with price fluctuations ranging from 18300 yuan/ton to 19175 yuan/ton, with an amplitude of 4.nftgamebattleroyale.68%。
[The macro impact appears. The strengthening of the US dollar has put pressure on the non-ferrous sector.]
Fed officials expressed concerns about inflation, meeting minutes were hawkish, and markets were worried about interest ratesnftgamebattleroyaleThe rise in expectations of the US dollar index has driven the increase in the US dollar index, which has an impact on the non-ferrous metals sector.
[Tight supply and sluggish demand have caused high lead prices to fluctuate.]
Lead refineries in some regions have undergone maintenance, and the shortage of waste supply has caused recycled lead refineries to reduce production and the supply situation is tight; however, under the influence of the low season of consumption, downstream demand has not increased significantly.
[The supply of lead concentrate is in short supply, the smelter is being overhauled, and the market expects improved demand.]
The shortage of lead concentrate and the decline in processing costs, coupled with the impact of the off-season of lead battery consumption, most smelters are under maintenance. Environmental protection inspections in Hunan have contributed to a decline in production in some small and medium-sized smelters.
[The recycled lead refinery is expected to increase production, and the arrival of used batteries has become a concern.]
Last week, the operating rate of recycled lead refineries increased. Although some refineries in Anhui reduced production due to equipment problems, the operating rate in Inner Mongolia increased significantly, and it is expected that there will still be possible to increase in the future.
[Demand weakened in the off-season, and spot market transactions gradually improved.]
Although the off-season has affected the reduction of orders, with the correction of lead prices, downstream purchasing willingness has strengthened, and market transactions have begun to improve.
[Investor's operational suggestions: Shanghai Lead PB2407 contract is the main focus, focusing on risk management.]
Investors are advised to use a volatile trading strategy to deal with the Shanghai lead PB2407 contract, while paying attention to the operating rhythm and risk control.