The collapse of the dollar zinc price pressure into the final straw – the city of Sina Financial News _ _ Sina
Posted on Jun-03-2008· by china investor
National League futures Zhu Ming-hsin yuan
May the case is destined for zinc will be volatile month, has undergone three or four months of weak consumption, zinc prices eventually began Xundi trip to seek more consumer admission. At the same time, the dollar's strength, the pressure has fallen zinc prices the last straw root, a number of factors seem to be as zinc prices continue to pave the way for the downlink.
The author believes that only consumption of zinc warming can really constitute an effective price support, such as inflation expectations, the Fund admission, its impact will be doomed to be limited. Zinc prices fell by more far-reaching significance of this round, will again return to its fundamentals.
For zinc prices fell, the most essential factor is the impact of weak consumer demand for zinc spot. This is in the international market and domestic market are there, as U.S. economic weakness led the major developed countries economic growth stagnated at the same time, China's macro-tightening policies to the world's largest basic metals demand of the slowdown in demand growth.
Since the supply of surplus zinc market has been going on for so long, why wait until now reflected ? This is the role of money: As the involvement of index funds, delayed the time zinc prices fell.
In the first quarter, due to depreciation of the dollar and rising global inflation expectations, the large number of index funds involved in the commodity market to avoid inflation risk, including metal markets are particularly sought after, which led to a period of strong metal prices.
Now, as the United States and the European rate cut space decreases the slowdown in economic growth, the dollar has suspended the pace of its depreciation, and recently, the U.S. dollar index in graphics technology, even signs of a bottomed, forcing fund managers Have to reconsider its investment strategy Shengshi. If the dollar bottomed and completed strong, then the investment goods will face great risk.
价的暴跌走势。 Therefore, I believe that the dollar has fallen zinc pressure the last straw that led to the price movements of the crash. On the overall situation, I believe that zinc prices have already started their Xundi trip, with the dollar's strength, financial assets are out, its price will again return to fundamentals, and the ultimate goal of this round down, it is to re-regulate the market The supply and demand pattern. With the price drop, will inevitably prompted some production capacity from out of the market, will also attract more consumer involvement. However, such adjustment is painful, is a long, sharp fluctuations in the prices of short-term it is difficult to avoid, the same will be its long-term pattern of the disadvantaged.
chinainvestor:本版contents of the article was supplied by MarketWatch, does not constitute investment advice. Investors this operation, own risk.
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