Metallurgy / Chemicals / Rubber & Plastics

The domestic commodity futures market has risen in a large area recently, and several varieties hit record highs in the intraday market. The main iron ore soared by 6.37%, leading the commodity market strongly; styrene closed up 5.4%, followed closely; the main threaded contract reached a record high of 5698 yuan/ton; the hot-rolled futures price also exceeded 6000 in the intraday Yuan/ton mark; the end of coking coal and coke also closed up 3.25% and 2.68% respectively. In terms of decline, only the main contracts of fuel oil and SC crude oil fell nearly 1%.

Iron ore styrene soared sharply, multiple varieties set a new record

The bullish sentiment in the commodity futures market remains high. In the market on the 7th, many varieties including iron ore and Shanghai copper set record highs successively. As of the close of the day, the main iron ore rose by 6.37%, leading the commodity market strongly, and styrene closed up 5.4%, followed closely by it.

The subject of supply-side tightening continues to support the price of finished products, while the high profits of steel mills, structurally tight port resources, and high discounts have made iron ore prices unaffected by the policy of reducing crude steel production. According to data from Mysteel, as of the week of May 6, the imported iron ore inventory of 45 ports across the country was 129,577,800 tons, a month-on-month decrease of 689,100 tons. In addition to coarse powder, fine powder, lump ore and other varieties Inventories have declined month-on-month. In the same period, the blast furnace operating rate of the 247 sample steel plants increased by 0.39% month-on-month to 80.47%, rising for 5 consecutive weeks. Other statistics show that benefiting from increased demand and rising steel prices, the performance of domestic listed ferrous metal companies in the first quarter of this year was almost red across the board, and the total net profit attributable to the parent company increased by 48.41% year-on-year.

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In the intraday trading on the 7th, the main thread contract futures price reached a record high of 5698 yuan/ton; the hot-rolled futures price also broke the 6000 yuan/ton mark in the intraday trading. Coking coal and coke final trading also closed up 3.25% and 2.68% respectively.

Non-ferrous metals are also strong. In early trading on the 7th, as Lun Copper hit a record high of US$10,190/ton, Shanghai Copper also rose sharply to above RMB 74,000/ton, setting a new high in more than ten years. The overall macro environment is still bullish. Optimistic expectations for copper demand in the new energy industry and lower copper inventories have helped both domestic and foreign copper prices rise. According to data released by the General Administration of Customs on the 7th, in the first four months of this year, China's imports of unwrought copper and copper materials increased by 9.9% year-on-year. However, some foreign executives reminded that the market's expectation of increased demand for the electric vehicle industry and speculative buying demand have promoted the rise of copper prices, but the recent surge in copper prices is expected to be unsustainable.

Along with the rise in copper prices, most other metals also closed up. Among them, Shanghai aluminum rose by nearly 3%, becoming the most powerful variety among base metals; zinc, lead, etc. also rose by more than 2%.

In terms of other varieties, thermal coal continued to inertially rise after the surge, hitting a new high of 874.6 yuan/ton since its listing. A total of 23 active varieties rose more than 2% throughout the day.

Commodity market rises more and falls less, crude oil futures prices are high and callback

As the Indian epidemic continued to cause market concerns about the prospects for oil demand, international oil prices pulled back from a high level, and Shanghai's main crude oil contract followed adjustments. The futures price fluctuated widely and eventually closed down 0.79%. The Indian epidemic continues to worsen. Haitong Futures said that according to agency forecasts, Indian crude oil demand will fall by 500,000 barrels in May. According to the current development, it is expected that India's crude oil demand will not perform well in June and the third quarter. And on the supply side, OPEC + May will also start the process of increasing production. Compared with March output, OPEC alone will increase crude oil production by 1.37 million barrels. Of course, this includes the 1 million barrels of production recovery that Saudi Arabia has voluntarily reduced. The supply side has increased and Indian demand has decreased. From the perspective of supply and demand, the crude oil market in May is still facing relatively heavy pressure. However, Citigroup analysts said that with the continuation of vaccination and the release of suppressed demand during the summer driving season, the trend of demand recovery in Europe and the United States will continue, resulting in strong demand for vehicle fuel, which will also boost the demand to a certain extent. The market's confidence in economic recovery.