Coke and Iron Ore Lead to Slump

Date:2016-07-20 Source:zk corp Views:

The speed of futures price limiting down surprised us, of which black metal minerals lead such as coke, iron ore. Black metal mineral market price is basically in a state of soaring.before encountering limit. Recent market including that UK's falling out of the EU may have impact of demand. Real estate investment growth fell, the slow down in industrial growth and some other bad news increase market panic.
Commodity analysts believe that international commodities are still in the process of cutting excessive industrial capacity. Fall in mid July may open the gate of the commodities decline. Referring to previous years of historical experience, March and April is often the traditional season of commodities, a large part of the purchase of a year to be ordered in these two months, After the peak season ,may and June is the traditional off-season, volume and price decline in various degrees. But this year is a little unusual, Market in May and June is still hot, continuing to go high. and July is still a continuation of the trend in May and June.
However, this year's commodity trend has been different from previous years. The commodity market opened this year's second round of increases, rallied for a month, since June, commodity Price Index BPI (Bulks Price Index) are from 697 to 712. In previous years, a number of varieties in commodity markets rose strongly in the traditional futures market off-season. Precious metals, basic metals, iron ore, plastic and even sugar, soybean meal, glass and constantly insanely limit. Iron ore rose as high as 17.63% in one month from June 15 to July 15. During this period nickel prices rose 14.45%, PP prices rose 14.59%, silver futures were up 16.75%.
Overall, both domestic and international, the majority of commodities are in the stage of excess production capacity. Before the end of the big cycle to go to production capacity, commodity short-term gains can only be a small market. Analysts pointed out that the slump in the black metal mineral is caused on the one hand by slowing industrial production and that the real estate investment will fall In the second half year, on the other hand it is also related with that steel production hit a record high and commodities are still in the trough of the production capacity.
“It is difficult to change the oversupply situation in short term. The market will usher in a second wave fell in the year, the market may be officially opened fell mode in mid July. Parts such as coking coal, plastics, which has been in the rally before the commodity, the decline may be up to 5%-10%.” Analysts said.
 

Message

InquiryYou can get the price list and we will contact you within one business day!

Name:*
Country:
E-mail:*
Cellphone:
Capacity:*
Raw Material:
Message:*
WhatsApp
+86 18037866379
WeChat
+86 18037866379

Contact Us