中文
Analysts say multiple pressures from domestic and international markets have cooled commodity prices.
On the one hand, the domestic multi-party intensive efforts to maintain the stable operation of commodity prices. The two recent executive meetings of the State Council both mentioned the issues related to the price rise of bulk commodities. The executive meeting of the State Council held on May 19 put forward that we should do a good job in ensuring the supply and price of bulk commodities and maintain the stable operation of the economy. The executive meeting of the State Council on May 12 called for tracking and analyzing the situation and market changes at home and abroad, doing a good job in market regulation, and coping with the rapid rise of commodity prices and its associated effects.
Each futures exchange recently adjusted the trading rules for the futures market. On May 19, Dalian Commodity Exchange announced that it would revise the iron ore futures contract and related rules. On May 17, Zhengzhou Commodity Exchange announced that it would adjust the margin standard and the limit range of trading for soda ash, vegetable oil, rapeseed meal and steam coal futures contracts. On May 14, the Shanghai Futures Exchange announced that it would adjust the margin ratio and the price limit of rebar and hot rolled coil futures.
On the other hand, the expected warming of the Fed’s monetary policy contraction is not conducive to the trend of commodities. According to the minutes of the Federal Reserve’s April meeting released in the early morning of May 20, Beijing time, some officials attending the meeting mentioned: “if the US economy continues to repair rapidly towards the goal of the Federal Reserve, it is appropriate to discuss plans to adjust the speed of asset purchase at the next few meetings.”Analysts said the signal released by the minutes of the Fed meeting reinforced market expectations that the Fed was about to tighten monetary policy. Once the monetary policy is tightened, the US dollar will be able to take action, which will suppress the trend of commodities.