May 03, 2024

Metal prices may fall back under pressure

Abstract biggest power metal this round of rebound, the central bank is at the end of July to launch a new round of reverse repos, which inject the market with great confidence; and the last round of reverse repo is at the end, boost the stock market rebounded sharply A quarter of the price of metal has also rebounded significantly in addition to aluminum. After the Spring Festival...
The biggest driving force behind this round of metal rebound is the new round of reverse repurchase launched by the central bank at the end of July, which injected great confidence into the market. The last round of reverse repurchase was at the end of last year, which boosted the stock market. 1/4, metal prices have also rebounded significantly in addition to aluminum. After the Spring Festival, the reverse repurchase was suspended, and the stock market and metal prices all fell sharply, indicating that the central bank’s capital operation intention has a huge impact on the market!

Therefore, it is not surprising that the central bank once again launched a reverse repurchase to boost the metal price across the board. However, in the past two days, the central bank has also signaled a "tight balance." Yesterday, the central bank carried out a reverse repurchase operation in the open market, but the winning bid rate was 3.9%, significantly higher than the 3.278% secondary market weighted interest rate, plus the central bank’s expiration of three-year central bank bills on Monday, double strike Next, the market generally believes that the funds will remain at a "tight balance" level.

This is actually not quite unexpected from our previous expectations, because the overall situation of the domestic economy is still worrying; and the core concept of the central government's regulatory policy has not changed, only a slight change in operational methods. In the following six months, although the remarks on real estate regulation have been loosened, in fact, various aspects of the policy are still being implemented closely, and the financing pressure of real estate projects has become more and more increased; this is more like a shouting slogan to take practical action. change.

We expect that with the market's in-depth understanding of the central "tight balance" policy, the situation that the capital market price and price will rise will soon be exhausted, and the metal price will also be under pressure first; among them, the performance of aluminum in various varieties Perhaps the weakest, because the bottom is not obvious, we expect its market will gradually pull back to the direction of 13,500.

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