Multiple popular futures contracts experienced significant drops. Institutions claim that high volatility will become the new normal.
After experiencing rapid growth last week, domestic commodity futures experienced a large-scale correction this week, with main contracts almost across the board. Among them, main contracts for varieties such as coking coal, glass, coke, soda ash, industrial silicon, and lithium carbonate hit the limit down, with aluminum oxide falling by over 6% and polysilicon falling by over 5%. Investors are concerned about whether this indicates the end of the continuous uptrend. Since early July, under the influence of the "anti internal consumption" policy, the bullish sentiment in the commodity market has been steadily rising, with multiple varieties experiencing rapid consecutive increases, leading to irrational situations in the market. In response, domestic commodity exchanges took timely action to effectively cool down the market. Industry experts remind that the current market is still dominated by macro sentiment, and the improvement in the fundamentals driven by policies still needs time. It is recommended that investors rationally consider market fluctuations. As for the future, many analysts believe that resource commodities are entering a phase of revaluation, and high volatility will become the norm in market operations.
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