HNA East Silver: Brightening up of steel prices

(a) Perspective:

1. Day: Bullish, support at 4800, pressure at 4910 (1201 contract);

Bullish, support at 4900, pressure at 5000 (1110 contract)

2. Medium term: see more, support at 4700, pressure at 5053 (1201 contract);

See more, support at 4800, pressure at 5100 (1110 contract)

(B) Reasons:

1. The main reasons for the bullish days:

(1) The employment data boosted US stocks sharply higher.

(2) In the second half of the year, the monetary policy or fine-tuning will be oriented to give ** policy tilt to areas such as affordable housing.

2. The main reasons for seeing the midline:

(1) Demand for affordable housing has been boosted, and policy efforts have continued to increase.

(2) Rebar's social inventory runs at a low level.

(3) The period is still upside down.

(4) Iron ore prices are operating at high levels.

3. Operational recommendations: more than one holding, high after opening up every time to make up short positions.

(III) Market Review:

On August 11th, due to the impact of European sovereignty, Shanghai Iron & Steel fell slightly today, but then rose rapidly. The 1201 contract rose to a maximum of 4809 points, then dropped slightly, and rose 11 points, or 0.23%, to 1110 contracts. The highest rise was 4912 points, up 20 points, or 0.41%.

(D) spot market spot price: August 11th, the country's 25 major cities Φ20mmHRB335 rebar average price of 5012 yuan / ton, compared with the previous day's price rose 1 yuan / ton, Φ20mmHRB400 average price of rebar is 5162 yuan / ton, and Last exchange was flat.

Steel price adjustment: Shagang and Hebei Iron and Steel Group introduced the price policy in mid-August, Shagang reduced the rebar price by RMB 50/ton, and now the ex-factory price of 16-25mmHRB400 is RMB 5,050/ton; Hebei Iron and Steel Group maintains the rebar price unchanged. The price of Φ18-25mm tertiary rebar is now RMB 5,080/t.