May 10, the mainland futures market black, non-ferrous commodities again across the board, while driving the A-share coal, steel, non-ferrous sector rose, some brokerage firms to prompt investment risks, there are also comments that this is the coming signal of inflation.
According to mainland e company news, May 10, mainland futures market intraday, iron ore, rebar, hot rolled coil rose one after another, iron ore ton price broke 1,300 yuan RMB; coking coal futures main contract also once rose more than 7%; rebar single ton over 6,000 yuan RMB, the Financial Times news, Clarksons Platou Securities in a newsletter sent to clients A briefing note wrote: “These are record price levels, exceeding the highs of the pre-2010 boom.”
According to statistics, 20 futures varieties on the mainland have risen by more than 20 percent so far this year, with 10 of them rising by more than 30 percent, namely styrene, glass, hot coils, rebar, iron ore, power coal, crude oil, PVC and Shanghai aluminum.
Driven by the futures market, the A-share 10 morning steel, non-ferrous, coal and other sectors opened sharply higher, and rose strongly throughout the day. Steel sector, Chongqing Iron and Steel, Baosteel shares, Shougang shares and other stocks have risen, non-ferrous sector of Yintai Gold, Aluminum Corporation of China, Yunnan Aluminum shares, Yunnan Copper, coal Tibet Mining, Shanxi Coking Coal, Lu’an ring energy and other stocks also rose strongly.
These three sectors of the day a total of 36 stocks stopped, accounting for 133 stocks in the two cities, 27%. A total of 242 stocks in the three sectors, close to 90% of stocks closed in the red, with an average gain of 4.65%.
Spot prices also followed the price increase, according to my steel network incomplete statistics, May 8, Tianjin Tiansteel, Jiangsu Xugang Group and other 95 steel mills to increase the purchase price of scrap steel, the price range of RMB 10 yuan / ton to 200 yuan / ton. On the same day, 19 construction steel companies raised the ex-factory price, the price range of RMB 50 yuan / ton to 230 yuan / ton.
In the international market, according to the British “Financial Times” news, 10, the Asian market iron ore prices rose more than 10%, Singapore iron ore futures prices rose to more than $ 226 per ton, a record high in U.S. dollar terms.
S&P Global Platts (S&P Global Platts) said that the physical price of iron ore has touched a record high of more than $212 per ton.
Justin Smirk, senior economist at Westpac, said, “I think the reality is that the market is still very tightly supplied and steel prices will remain at very strong highs.”
Meanwhile, copper prices have come in at all-time highs.
Copper prices hit an all-time high on the 7th, rising 1.4% to $10,361 per ton, surpassing the peak it set during the last commodities boom in 2011, according to the Financial Times on the 7th.
In other commodities markets, tin prices rose above $30,000 per ton for the first time in 10 years on the 6th before easing back.
U.S. lumber prices continued to rise in the face of the upcoming peak summer U.S. home building season, with lumber futures prices hitting a record high of more than $1,600 per 1,000 board feet, compared to $330 last year at this time.
Concerns surrounding the U.S. drought, coupled with the fact that Brazil is also experiencing a particularly dry season, are driving agricultural prices higher. Corn rose to a more than eight-year high of $7.68 per bushel (36.368735 liters) last week (3-7), while coffee has risen nearly 10 percent since the beginning of the month to touch a four-year high of $1.54 per pound.
For commodity prices, commentator Wen Xiaogang believes that, firstly, the industry is expected to gradually recover the economy, increasing demand for raw materials; secondly, in order to stimulate the economy, central banks inject huge amounts of water into the market, issuing more money, pushing up commodity prices, but the upstream price increases will certainly be transmitted to downstream commodity manufacturers, and finally passed on to consumers, which is very likely to bring inflation.
Shanghai Maikerong information consulting chairman Xu Yang also said that, first, the rising cost of raw materials to promote the general price of commodities; second, the downstream industry production recovery formed a supply and demand tension; third, non-ferrous metals, some chemical products and other financial attributes prominent, loose monetary policy, the global economy is expected to improve, etc. pushed up the activity of global futures trading. Fourth, the financial market short-term speculation also has a significant amplifying effect on price increases. Fifth, the dollar index entered a phase of weakness.
For how long the commodity rally can continue, Xu Yang believes: “Overall, the black system still has the momentum to rise.”
Goldlink analyst Xu Cuiyun also believes that, in the short term, iron ore prices remain strong, if steel demand falls significantly, steel prices have a major pullback, steel prices drive iron ore down, otherwise iron ore will maintain a strong momentum, short-term easy to rise, difficult to fall.
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