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[SMM Black Futures Daily Review] 20190 705: the state ministry intervened in the investigation, and the iron ore multi-contract fell by the limit.
Jul 5,2019 17:29CST
The content below was translated by Tencent automatically for reference.

In terms of volume and price: RB1910 closed down 40 yuan / ton to close at 3984 yuan / ton; HC1910 closed down 34 yuan / ton at 3858 yuan / ton; I1909 closed down 38.5 yuan / ton at 829.5 yuan / ton; J1909 closed down 14.5 yuan / ton at 2140 yuan / ton. In terms of position data, RB1910 handled 4.18 million transactions, with a decrease of 4252 to 2.48 million; I1909, 3.5 million, with a decrease of 142000 to 1.49 million; in terms of capital flows, the net inflow of RB1910 funds today was 13.76 million yuan; and the net outflow of I1909 funds was 872 million yuan. Viewpoint: continue to divide and operate. Today, qu Xiuli, vice president of the China Iron and Steel Association, said at the fourth China Financial Derivatives Conference that relevant state ministries are highly concerned about the sharp rise in iron ore prices and are investigating the reasons for the sharp rise in prices. Will severely crack down on arbitrary price increases, price monopoly and other irregular behavior. Affected by this news, the iron ore, which had already stabilized and rebounded, fell sharply to about 850. in the afternoon, the Shanghai Stock Exchange confirmed that Sinosteel was leading the mainstream steel mills to set up a working group on imported iron ore to study major issues related to the imported iron ore market. The futures impact collapsed again, and the main force fell to 816.5 at one point in I1909. then it rebounded slightly to the close of 829.5, out of concern about the decline in ore prices in the later period. The performance of far-month contracts was even more weak, with a number of contracts falling by the limit one after another, dragging down rebar and hot coil. Although the ore port inventory continues to decline, the tight supply and demand pattern has not changed, but the national level to regulate and control the market caused a disturbance, bulls confidence has been hit hard, short-term may enter a phased pullback. In terms of coke, as the price of coke sold at present is close to the cost line, and the inventory in the coke plant as a whole is not large, and the market expectation has changed, it is understood that at present, some high-quality metallurgical coke resources in Shanxi and some secondary coke resources in the northwest region have the intention of hoarding goods, which will boost the coke market to a certain extent, and the coke price is expected to remain strong. In terms of timber, there is a need to follow the adjustment of the drag on the ore in the short term, but the environmental protection expectation in the later stage is still there, there is still support for the price, and there is not much room to continue to go down. after building a rising relay platform, there may still be upward space in the later stage. Strategy: RB1910 contract range (3930, 4200); I1909 contract range (800900), the middle line multiple single light position holding, short-term can be high sell low suction. Disclaimer: this information comes from a statistical arbitrage model based on historical data, and all conclusions are based on reliable and publicly available information. The SMM quantification team is not responsible for any losses that may be caused by all information. We recommend that investors independently evaluate specific investments and strategies. Investors are also encouraged to seek advice from professional financial advisers. This information does not provide a tailored investment strategy.

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