Ferrous Market Updates
– MySteel 45 ports iron ore inventory at 108.09 million tonnes, up 276,500 tonnes w-o-w. Daily evacuation 3.15 million tonnes down 50,000 tonnes w-o-w. Australia iron ore on ports at 61.49 million tonnes up 156,000 tonnes w-o-w. Brazil iron ore on ports at 22.42 million tonnes up 693,000 tonnes w-o-w. 147 ships at ports up 23 w-o-w.
– Mysteel surveyed 247 blast furnace operation rate at 91.02% down 0.78% w-o-w. Blast furnace utilisation rate 93.35%, down 0.07% w-o-w. Daily pig iron production at 2.48 million tonnes, down 1,800 tonnes.
– Brazil Ministry of Foreign trade statistic indicated June iron ore export 30.05 million tonnes, up 1.3% y-o-y, up 40% m-o-m, creating the highest monthly export over previous eight months.
China weather and Coals
– The coal branch of China National Energy Group sent emergent notice to stop physical selling because of coal shortage in July. However coal mines price saw lower bids yesterday.
– China started a Fourth Level Alert on flood prevention.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 2nd)
– Futures 61,001,300 tonnes(increase 1,297,500 tonnes)
– Options 92,460,600 tonnes(increase 185,000 tonnes)
Verdict
– Short-term neutral.