betfairvideopoker| Tangshan billet prices fell 10%: building materials consumption increased by 2.0% month-on-month, and iron ore futures were adjusted in shock

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Rebar futures shock adjustmentBetfairvideopokerThe volume of trade is weak.BetfairvideopokerSteel supply is expected to increase, and it is recommended to go short at high prices. Iron ore futures also showed a volatile trend, supply and demand loose inventory pressure continued, it is also recommended to go short at high prices.

Text of news flash

[the rebar and iron ore futures markets show a volatile adjustment trend, and the operation suggestion is to short each high]

This week, the rebar futures market experienced a shock adjustment. In the spot market, the trading volume of construction steel among 237 mainstream traders is 12.Betfairvideopoker. 760000 tons. The price of Tangshan billet is 3470 yuan / ton, down 10 yuan from the previous month; the national thread quotation is 3843 yuan / ton, down 9 yuan from the previous month.

The supply of five major steel varieties reached 885 this week.Betfairvideopoker.790000 tons, an increase of 80700 tons, or 0.9 percent, over last week. It is worth noting that, with the exception of threads, the output of the five major steel varieties this week has achieved a month-on-week increase.

On the inventory side, the total inventory of major steel products fell to 18.8461 million tons on Friday, a decrease of 444100 tons, or 2.3 per cent, from the previous month. At the same time, the weekly consumption of the five major varieties increased by 4.7 per cent to 9.3021 million tons. Among them, building materials consumption increased by 2.0% month-on-month, while plate consumption surged 6.4% month-on-month.

For the rebar market, despite a slight decline in production, inventory continues to decrease, the overall market demand is stable and has a downward trend, the data performance is in line with market expectations. However, the continuous weak operation of trade transactions and the cautious attitude of market sentiment have led to the normal production of steel mills at the supply side and the expected increase in steel supply. The fundamentals are weak and the futures price may face shock adjustment.

In the iron ore futures market, there has also been a shock adjustment. In the spot market, the price of PB powder in Rizhao Port is 867 yuan / ton, down 1 yuan from the previous month, while that of special powder is 710 yuan / ton, up 1 yuan from the previous month. The price difference between low-grade and high-quality PB powder is 157yuan / ton.

On May 9th, the total inventory of imported sinter powder in the 114steel mills was 26.5617 million tons, a decrease of 1.1311 million tons compared with the previous period. The total daily consumption of sinter powder is 1.1288 million tons, an increase of 7300 tons compared with the previous month. The ratio of inventory to consumption fell by 1.16 to 23.53. The average cost of hot metal excluding tax in steel mills rose to 2724 yuan per ton, an increase of 30 yuan.

In April, China imported 101.818 million tons of iron ore and its concentrates, up 1.1 percent from a month earlier. From January to April, China imported 411.821 million tons of iron ore and its concentrates, an increase of 7.2 percent over the same period last year.

On the supply side, shipments of foreign mines continued to pick up, and the volume to the port increased significantly. As mines enter the traditional shipping season in May, iron ore supply is expected to maintain an increasing trend. From the demand side, the operating rate of steel mills continues to increase, and the output of hot metal is likely to increase further. However, suffering from poor profits of steel mills, the recovery of capacity is highly limited. At the same time, the port inventory is relatively high, the loose supply and demand pattern leads to the persistence of inventory pressure, iron ore prices may face shock adjustment.

To sum up, in view of the current rebar and iron ore market, operators should adopt the strategy of shorting high to deal with the uncertainty of the market.