160 million funds running into the market iron ore multi-contract limit

Yesterday, the futures market was full of red, black goods staged a counterattack, iron ore is now retaliatory rebound, multi-contracts closed up. Some analysts believe that the cost support role of iron ore prices has become increasingly significant, providing future action prices. After the Chinese central bank lowered its bid on Sunday, the call for interest rate cuts continued to increase, which also boosted the market's enthusiasm. However, the spot market of steel products did not improve, and the terminal demand did not limit the increase in futures prices.

According to Wenhua Finance and Economics, the amount of iron ore futures inflows yesterday was about 160 million yuan, and the current deposited funds reached about 2.55 billion yuan.

On the face of the disk, yesterday's iron ore futures main 1509 contract opened at a high volume, accelerated at 10:30, and closed at 399 yuan / ton ($64) in the afternoon. In the recent month, the 1505 contract reached a daily limit and closed in the past eight trading days. The rebar 1510 contract was strong and it regained the 2300 mark. Singapore's iron ore futures also jumped yesterday. The most active June iron ore contract rose 3.9% to $51.35 a tonne.

Mining giant BHP Billiton recently said it will postpone its expansion plan to increase its iron ore production to 290 million tons, the first major miner to slow production after the price plunged. Another giant Rio Tinto Group also said that its iron ore shipments in the first quarter fell sharply by 12%.

According to data released by TSI Steel Index, the spot price of China's spot iron ore was flat at $50.80 per ton on Tuesday. According to annual price data compiled by Goldman Sachs, iron ore prices hit US$46.70 on April 2, the lowest level since 2004-2005.

Sukhden financial analyst Kash Kamal said that China’s sharp cut in bank deposit reserve ratio this week to stimulate economic activity will help boost market sentiment, but iron ore may not rise sharply to more than $50. Whether it is a slowdown in construction activity or a potential bubble in the real estate industry, there is concern that steel demand will continue to be under pressure. He says.

China's crude steel output fell 1.7% in the first quarter, as the economic growth rate slowed to the slowest since 2009. The weak output of China last month led to a decline in global crude steel production by about 3%. Even so, the European and American steel industry organizations believe that China has not taken sufficient measures to control the excess capacity of the steel industry and curb its record exports. China is the world's largest steel producer. Last year, steel exports increased by about 50%, hitting a record high of 94 million tons, but this year's exports began to fall.

Some Chinese traders do not believe that iron ore will continue to rise. We have not bought iron ore cargo for two weeks. The market seems to be rebounding, but in the long run, we think the price will go down, so there are some risks in buying now. ” A trader said.

Founder's medium-term futures believe that short-term production cuts by some mines, steel mills resumed production and easing policies boosted, and futures prices supported a strong rebound. However, due to factors such as high port inventories and expected new capacity in the second quarter, the second quarter The spot material is a pattern of oversupply and pressure. Recently, the ore futures funds continued to increase their positions, and the long-term rebound of 410-420 yuan in the region may have a large fluctuation in pressure. In April, steel mills resumed production on the near-term monthly support, if the late fundamentals and policies are not large. Changes, the downturn in steel prices in the off-season may further drive down the ore.

The first futures believe that the government will continue to maintain a loose monetary and fiscal policy to hedge the risk of economic growth, and interest rate cuts will also come. If the real estate industry continues to pick up, it will stimulate the demand for rebar. The current situation of oversupply will be improved, and rebar and raw iron ore will rebound slightly. In terms of operation strategy, rebar and iron ore are still excellent varieties for shorting of the hedging operation, and unilateral operation is not recommended. Single-type arbitrage rebar 1510 contract shorts and 1601 contracts can be held for a long time. Iron ore concerns whether it has successfully stabilized the first line of 400 yuan, and the multi-iron ore thread can also participate appropriately.