Today, the domestic futures market is dominated by low-level shocks, and some varieties are slightly differentiated.
Since yesterday night’s low opening, the daily decline has narrowed significantly, and most varieties have rebounded slightly at a low level. The hot coil and iron ore futures once turned red, but failed to stand firm, and turned green at the end of the day. Double focus opened low and walked high, setting a new four month high.
Spot market prices fell slightly, individual regions and varieties rose and fell, and transactions were slightly different across the country. The trading atmosphere in some regions was better than yesterday, some shipments were still light, and the terminals in East China recovered slightly, but there was still a long way from the official release.
At present, the market operation trend is not closely related to the fundamentals. It is more dominated by market news and policies, resulting in repeated fluctuations in market sentiment. On the other hand, there is also the result of mutual game between long and short funds at key points.
The external geopolitical risks are subject to twists and turns. According to the latest news, the confession Palace confirmed that the meeting between US President Biden and Russian President Vladimir Putin was cancelled, that Putin was approved to use Russian armed forces abroad, and that Putin’s latest statement that Moscow is ready to seek a “diplomatic solution” on the Ukrainian issue. If it can return to the diplomatic path, the short-term external risks are expected to be alleviated, The bottom space of the commodity market is limited, but the final direction remains to be seen.
In terms of domestic policies, the national development and Reform Commission and the State Administration of market supervision jointly held a special meeting to study the prevention of excessive iron ore hoarding, guide port enterprises, and urge iron ore trading enterprises to release excessive inventories and restore them to a reasonable level as soon as possible. The national development and Reform Commission and the State Administration of market supervision pay close attention to the changes in iron ore prices, and will further strengthen market supervision with relevant departments, resolutely and severely punish illegal acts such as fabricating and disseminating price increase information, hoarding and hoarding, and bid up prices, so as to effectively maintain the normal order of the market and ensure the stable operation of iron ore prices.
The “calm voice” of the country sounded again after the recovery, which is also the main factor leading to the failure of the market.
In the short term, before the demand is effectively confirmed, there is still a high probability of repeated and circuitous shocks in the steel market. Until the direction is truly established, the differences between different varieties will continue to exist.
Post time: Feb-26-2022