SMM News: the recent performance of the internal commodity market is quite eye-catching, from iron ore to rebar, from coke to hot rolled coil, and then to fried apples, red dates. A variety of major varieties are enthusiastically sought after by bulls.
How crazy is it? In addition to the strong varieties continue to rise, phased increases are relatively large, these popular varieties in the whole futures market under the pattern of net capital outflow still attracted a large-scale net inflow of capital.
The net inflow of capital from the main black varieties alone in the past week was as high as 4.785 billion yuan. The net inflow of iron ore, coke and rebar accounted for the top three, reaching 1.496 billion yuan, 1.273 billion yuan and 1.113 billion yuan respectively.
The net inflow of coking coal, hot rolled coil and thermal coal was 486 million yuan, 267 million yuan and 149 million yuan, respectively.
In the same period, the domestic commodity futures market showed a pattern of net outflow of funds, with a net scale of 1.02 billion yuan.
This wave of surging rising prices are mainly concentrated in the black system and the main varieties in the field of agricultural products, a number of contracts to create a phased high, the newly listed red jujube futures are rising.
Among them, iron ore this wave of rise starts fastest, the rally is also the most fierce, this year so far the cumulative increase has been as high as 55%. Since March 29, the variety has accelerated its rise, rising by 30%. Into May, iron ore is accelerated the speed of the attack, a cumulative increase of about 18%.
Iron ore main contract 1909 recently climbed to 730yuan / ton, the highest level since March 17, 2017.
The rapid rise triggered the emergency issuance of a risk reminder letter yesterday, saying that the economic and financial situation at home and abroad was complex and changeable, the uncertain factors affecting the operation of the market increased, and the futures prices of iron ore, coke and other varieties fluctuated greatly. At the same time, member units are reminded to strengthen investor education and risk prevention, and remind investors to participate in and comply with transactions rationally.
Coke, which is mainly used to smelt steel, has risen nearly 30 per cent so far at the start of the year, slightly later than iron ore and up more than 11 per cent since May 6.
As of May 22, coke main contract 1909 hit a maximum of 2338 yuan per ton, the highest level since late September last year.
Rebar and hot rolled coil have also risen by more than 10% so far this year. The main rebar contract 1910 recently rose to 3947 yuan per ton, the highest level since November 19 last year.
The iron ore market has basically played a supporting role in the face of prices, the domestic spot steel market gradually from the peak season to the off-season transition, the overall in the downward channel, although the market has its ups and downs, but the characteristics of strong supply and weak demand are slowly taking shape.
However, at present, this strong supply and weak demand is not reflected in the price, although some agencies suggest that further high rises may not be safe, but the bulls still have momentum. As of Wednesday's close, Dabang had more than 306175 hands in the top 10 net bulls and 230496 short orders in the top 10, about 30 per cent higher than the latter, according to Wind data.
The coke long empty competition is equally fierce, the net long top ten net more than 31948 hands, the net short top ten net short single 29133 hands, the former is about 10% higher than the latter, and the situation of both sides is obvious.
It is worth noting that the finished product has more short positions than the bulls of raw materials. Thread steel net long the first ten net more than 251569 hands, the first ten clear single 237253 hands, the former is about 5% higher than the latter.