High-level pressure again, steel prices fell for six consecutive times!
Opening today, the domestic black series ushered in a sharp decline!
As of the close, thread and hot coil futures plummeted nearly 300 yuan, with the lowest reaching 4661 and 5,011 yuan respectively, and the highest decline was more than 6%. The raw materials such as double coke once turned red in the intraday, but failed to maintain. Iron ore quickly dived in the afternoon , The 1000-yuan integer pass was effectively broken down, and the material was shown in a long shadow posture, the double-focus wide vibration saw, and finally the long upper shadow line was pulled out to close the shadow.
Spot market prices fell sharply, but the trading atmosphere was significantly lower than yesterday. The transactions of individual large-scale accounts fell to about 40% yesterday, and the low-price transactions did not improve. The market sentiment was pessimistic. Because the shipment situation and the price are no longer relevant, some Merchants even stopped quoting in the afternoon.
After the continuous plunge, the price bubble accumulated in the previous period has been effectively squeezed. Just as the market expected to be or has bottomed out, the market plunged again beyond expectations. What is the reason?
The high-level supervision of bulk commodities is becoming stricter + the off-season weakening effect appears + the capital market uses news to help the rise and fall, repeated washings and other factors superimposed resonance.
In the recent past, the intensity and frequency of high-level talks on commodities has continued to increase. The Shanghai Futures Exchange will always adhere to the principle of “establishing a system, non-intervention, and zero tolerance”, adhere to the bottom line thinking, closely follow market changes, vigorously investigate abnormal transactions and malicious speculation, take timely targeted measures, and do a good job in the monitoring of futures and current linkages to contain The price fluctuates unreasonably.
The current sharp fluctuations in steel prices have had a greater impact on downstream industries. Steel prices continue to rise sharply. Fundamentals do not support it, and policies do not allow it.
The above makes the market sentiment that is already in the see-saw consolidation stage and has not yet gathered popularity once again defeated. Yesterday, we also gave a timely warning, prompting changes in the funding and holdings, and the black bottom is likely to be repeatedly worn and then out of the direction.
Then how to perform later, where is the bottom?
One is that unexpected rises will inevitably lead to unexpected declines.
The second is that after the sharp rise and fall, the bottom is very close.
The third is that, in the context of policy disturbances, market sentiment, capital orientation, and instability or weakening of demand in the off-season, the market has experienced an inertial decline.
Fourth, it is not ruled out that the capital side uses the news and the reality of supply and demand to repeatedly wash the market to lure shorts, wash away the funds that have been consistently followed in the early stage, and the bottom needs to be further consolidated.
Fifth, in the context of global inflation, domestic carbon peaks, and global demand growth, the mid- to long-term general direction of growth has not undergone a substantial change.
Generally speaking, after successive plunges, the decline may show signs of slowing down, but short-term steel prices will continue to bottom, see-through, or even fall again, and then gradually return to normal levels. The conditions for sharp increases will not be established for the time being.
Data shows that today, the average price of Ф25mm grade 3 rebar in key domestic cities is 4,993 yuan (ton price, the same below), down 86 yuan from yesterday; the average price of Ф6.5mm high-line steel in key domestic cities is 5552 yuan, down 70 yuan from yesterday ; The average price of 5.5mm hot-rolled coils in key domestic cities is 5552 yuan, down 70 yuan from yesterday; the average price of 1.0mm cold-rolled coils in key domestic cities is 5329 yuan, down 101 yuan from yesterday; the average price of 20mm medium plates in key domestic cities The price was 6,120 yuan, a decrease of 85 yuan from yesterday.
Today, Qian’an 150*150 plain carbon billet in Tangshan area is 4700 yuan, down 240 yuan from yesterday; Jingtang Port 61.5% grade Australian PB iron ore powder price is 1330 yuan, unchanged from yesterday; Tangshan area quasi-level metallurgical coke containing The tax to the factory is 2,900 yuan, the same as yesterday.