SunSirs: Rapid Change of Capital Funds, Coke is under Pressure to Callback to Support Area in China

Futures: on Wednesday, coke 2009 closed 1,934 (down 13.5), adding more than 8,000 positions and increasing trading volume. At present, the blast furnace demand of steel plants is strong, and the coke inventory continues to drop; the coke enterprises in Shandong, Jiangsu and other places have limited production and the policy of de capacity fermentation, and the coke enterprises in many places have started the sixth round of price increase of RMB/ ton, and the futures follow the logic of increasing valuation and concussion. Worry about the second outbreak of short-term COVID-19 led to the concentration of funds in and out, severe washing up, rapid change of funds, and the correction of short positions; or explore the support area under pressure, pay attention to the change of fund sentiment, market supply and demand and policy expectations, and prevent the change of funds.

Spot: China coke enterprises started the sixth round of raising 50 RMB/ ton of coke. Spot prices of coke in Rizhao, Qingdao port and other places: quasi first grade coke 1,900-1,950, first grade coke 2,000-2,050. Shandong's coal production plan and coal consumption plan reduced by 10%, and the market remained strong due to the influence of Shandong, Jiangsu and other coke enterprises' production restriction and capacity reduction policies. The overall inventory of coke enterprises in Shanxi Province is low and the shipment is smooth; the blast furnace operation rate of steel plants remains high and the demand is strong; the supply and demand pattern is tight, and the port inventory reduction supports the market price.

Strategy analysis: The current monetary and fiscal easing of various countries to support the economy to deal with the impact of COVID-19 on the economic impact. Europe and the United States have restarted their economies to boost market demand expectations, the epidemic situation in the United States and other places has continued, and there are hidden worries about expansion. The country has strengthened macroeconomic regulation and control and vigorously loosened policies to stabilize economic growth. At present, the demand for coke continues to exceed expectations and the loose policy pushes up the spot price expectations. Futures follow the logic of rising and rising valuations to prevent short-term pullbacks.

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