Take the main iron ore futures chain as an example. The price of iron ore began to rise in March 2020 until it peaked in May this year, and has been falling since then. After falling below the low point in March, the price seems to be bottoming out and has been rising for two weeks in a row.
According to the above analysis, in 2020, due to the serious epidemic, the world released a lot of liquidity. In this context, it is not surprising that all kinds of commodities are rising at an alarming rate. However, due to various reasons, the demand for iron ore has fallen sharply, from the high price to the low before the rise, and then began to rise after hitting a new low. Technical analysis seems to be a phenomenon of oversold rebound.
The new regulations have limited impact on the operation of iron ore futures. Generally, in the delivery month, most traders will replace them several months in advance. Considering factors such as raising margin and ensuring liquidity, most investors will act in advance.
Prior to this, Dashanggao had a discussion with China Iron and Steel Industry Association. The two sides exchanged views on optimizing iron ore futures contracts, implementing rolling delivery, improving delivery convenience, and promoting futures tools to better serve the steel industry. The iron ore futures system and rules are being optimized to better serve the steel industry. China Steel Association stressed that it will cooperate with DCE to promote the introduction and implementation of the optimized iron ore futures system and rules as soon as possible.
The Notice on Revising the Rules of Price Limit of Iron Ore Futures revised the Measures for Risk Management of Dalian Commodity Exchange and the Measures for Hedging Management of Dalian Commodity Exchange. The revised rules shall be implemented as of the date of the 2205 contract. According to the new regulations, there are restrictions on the number of positions held by non-futures company members of iron ore contracts, special non-broker participants abroad and customers. In addition, the position of individual customers in the delivery month is limited to 0 lots.