Ferrous Market Updates
– Steelbank construction steel inventories 7.11 million tonnes, up 1.73% w-o-w. HRC inventories 1.84 million tonnes, up 1.08% w-o-w.
– Tangshan announced a new round of environment protection and production curb started from July 5th. However details to be announced.
– Some traders indicated currently seaborne iron ore were strong last week since some mid-grade inventories were tight on the port. Some alternative iron ores price have already increased significantly during past few months.
China weather and Coals
– China meterology keep initiate heavy rain alert in eastern, mid-China, southern and south-western China area.
– China Reform Department sent a notice to accelerate finishing the capactiy cut on underqualified coal mines by the end of 2020.
– China coal import in may decrease after saw first four months increase because restrictions on some coal imports. China may imoprt coals totaled 22.05 million tonnes, down 28.73% from April.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 3rd)
– Futures 61,812,800 tonnes(increase 811,500 tonnes)
– Options 92,460,600 tonnes(increase 20,000 tonnes)
Verdict
– Short-term neutral.