jeopardytheme| Coking coal futures: Politburo meeting actively fiscal and prudent currency support coal char demand, and dual coke spot demand continues to improve

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May 8thJeopardythemeMost of the domestic futures market coking coal plate fell, intraday low concussion, down by 3%Jeopardytheme.08%. Institutional analysis believes that the coking coal market shocks downward, but the downstream demand support, coking coal prices are expected to be stable and strong in the short term.

Text of news flash

On May 8th, most of the coal plates in the domestic futures market were green, and the main contract for coking coal futures opened at 1850.0 yuan / ton. Intraday low concussion ran, closing down 2.92% in early trading. As of press time, the main force of coking coal reached 1858.0 yuan at the highest, and fell 1798.5 yuan below, a drop of about 3.08 percent. Dongxing Futures said that the Politburo meeting made it clear that the macro policy should rely on the front and implement a proactive fiscal policy and a prudent monetary policy. At the same time, the agency will co-ordinate research on policies and measures to digest the stock of real estate and optimize incremental housing. The consumption of inter-node building materials fell, the output increased faster, and the inventory deconstruction slowed down. Hot volume supply is strong and demand is weak, inventory is rising, pay attention to the situation of destocking in the off-season. Hot metal production continues to climb, continued to increase month-on-month in May, and the demand for raw materials has been supported. The cumulative increase of coke is four rounds, and some coke enterprises want to raise the fifth round. The improvement of profits leads to the enthusiasm of production and the increase of operating rate. Coke inventory continued to decline, downstream inventory decreased compared with the same period last year. Small fluctuations in coal mine start-up, inventory removal, coking plants and other inventory rise, procurement behavior is cautious, auction prices have fallen. Domestic policy is expected to be good, the recovery stage of hot metal is good for raw material demand, but the purchasing kinetic energy may be weakened after replenishment, and the coal coke shock operation is expected. Zhengxin Futures pointed out that spot demand for Shuangjiao is improving and the price cycle is not over, but the disk valuation is on the high side, limiting the upside space. After the festival, the tension between supply and demand of dual coke is alleviated, and the steel pullback pressure may drive the dual coke pullback. However, the supply-side disturbance of dual coke itself, the fundamentals are stronger than iron, and the strategy is still dominated by callback. Hua'an Futures believes that the coke four-round rise quickly landed on the ground, both supply and demand increased during the festival, inventory slightly removed. The market expects the downstream hot metal production to increase, the possibility of Shuangjiao price reduction to be reduced, and the fundamental demand to rebound to further improve. The independent coking plant turned from loss to profit after 4 months, and the output was increased driven by profit. Hot metal is expected to rise in May, the demand for replenishment may be released after the festival, the demand for raw coal in Coking Steel Enterprises is still strong, the spot demand remains strong, the expectation of five rounds of increase is strong, and the price of coking coal is stable and strong in the short term.