As the global economic landscape becomes more complex and geopolitical risks intensify, the futures market has experienced varying degrees of impact, leading to a significant rise in market uncertainty. On September 19th, Hengtai Futures released a new trading strategy, covering several areas such as energy and chemicals, agricultural products, and ferrous metals, providing investors with guidance on how to navigate market volatility.
Energy Sector:
Oil and fuel oil prices are fluctuating due to OPEC+ production increase expectations and low global inventory levels. In the short term, the supply-demand game is intense, with fuel oil being dragged down by weak demand, leaving limited room for rebound.
Chemicals Sector:
Methanol supply is increasing while demand remains weak, indicating that prices are expected to maintain a downward trend. LLDPE and PP, affected by rising supply and insufficient demand, will likely experience short-term price adjustments.
Agricultural Products Sector:
Corn prices are weak and fluctuating due to the pressure from new season supply. The live hog market, driven by warming consumption demand, is expected to maintain an upward trend with limited room for short-term decline.
Ferrous Metals Sector:
Iron ore faces a supply-demand imbalance, leading to short-term price fluctuations. The coke and coking coal markets are both weak in supply and demand, expected to maintain a short-term consolidation with coke prices awaiting macroeconomic improvements for a rebound.
Non-Ferrous Metals Sector:
Industrial silicon is experiencing ample supply and weak demand, making prices hard to stabilize. Lithium carbonate is characterized by high supply and weak demand, showing a clear downtrend in prices with insufficient momentum for short-term rebound.
Overall, macroeconomic and policy changes will be key factors influencing future market trends. Traders need to prudently adjust their investment strategies to cope with market uncertainties.
