At present, the entire industrial chain of sanitary diaphragm valves is ushering in the risk hedging stage

At present, the entire industrial chain of sanitary diaphragm valves is ushering in the stage of risk hedging. At present, the upstream, middle and downstream products of the domestic sanitary diaphragm valve industry are all listed in futures. The procurement and sales of the sanitary diaphragm valve industry can all be achieved through the futures market. The purpose of avoiding risks and locking in profits. It can be said that the current whole industrial chain of sanitary diaphragm valves has ushered in the risk hedging stage. The operating conditions of many stainless steel plants have improved significantly since the Spring Festival. There are three main reasons: one is that the capacity reduction of the intermediate frequency furnace does have a real impact; the other is that the sanitary diaphragm valve market has better expectations for the peak season demand in the first half of the year, and the intermediaries take the initiative to replenish inventory. Thus, the market demand was enlarged; thirdly, the price of coke continued to decrease after the festival, which made the profit of the stainless steel plant. From the perspective of the whole year, the overall profit of stainless steel plants this year is expected to rise from the bottom. At the beginning of December 2016, the sanitary diaphragm valve market had a major hype about the shutdown of intermediate frequency furnaces, but the profits of intermediate frequency furnaces were high, and the output was still being released. Coupled with the weakening of quarterly demand, there was a wave of decline in the market, and many sanitary diaphragm valve companies sold difficulty. However, some private enterprises have undertaken larger losses because they failed to avoid operating risks in the futures market. The medium and long-term terminal demand for sanitary diaphragm valves is good, but in the short term, the probability of further improvement in demand is small; and the resumption of production in stainless steel plants will be quite rapid under the stimulation of high profits; the accumulation of stainless steel welded pipe trade inventory is also large, so The spot price of stainless steel welded pipe may be close to the top. The sharp rise in iron ore in the early stage has already reflected the distribution of most of the steelmaking profits. In the later stage, with the stagnation of stainless steel welded pipe prices and the decline in steelmaking profits, and then superimposed on the ample supply and inventory, the iron ore declined and then fluctuated. The probability is greater. As far as the black series is concerned, the terminal demand has obviously recovered as expected, but the drive for further improvement is also declining; stainless steel plants will soon resume production under the stimulus of high profits, and the sanitary diaphragm valve trade link has accumulated a lot of inventory. Therefore, the overall upward momentum of black futures is likely to weaken, and the rise in the market led by steel mines will become a supplementary rise in coal coke. As for how steelmaking profits are distributed between various raw materials and steel mills, depending on the degree of supply monopoly and the existing raw material inventory levels, it should be iron ore>coking coal>coke.