Ferrous Market Updates
– Ganggu Construction Steel Inventory: production 5.77 million tonnes, up 15,700 tonnes w-o-w. Mills inventory 5.05 million tonnes, down 354,300 tonnes w-o-w. Circulation inventory 11.13 million tonnes, up 207,000 tonnes w-o-w.
– MySteel 45 port previous week iron ore arrived 23.45 million tonnes, down 656,000 tonnes w-o-w. Northern six ports arrivals at 13.43 million tonnes, up 972,000 tonnes w-o-w.
– MySteel 19 ports iron ore delivery at 23.28 million tonnes, down 3.07 million tonnes w-o-w. Australia delivered 17.26 million tonnes, down 1.91 million tonnes w-o-w. Australia delivered to China 14.46 million tonnes down 531,000 tonnes w-o-w. Brazil delivered 6.02 million tonnes, down 1.16 million tonnes w-o-w.
–
– Hangzhou rebar inventories reached 1.1 million tonnes, historical high level since some mid-China area ports can not load rebars or any cargoes in heavy rain or floods.
Macro
– Global inventors bought 4.3 trillion yuan of China debts in this Q2, created a historical high in single quarter.
– U.K. banned Huawei from 5G networks. All equipments made by the Shenzhen based company already installed will need to be removed from 5G infrastructure by 2027.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 14th)
– Futures 69,905,500 tonnes(increase 1,210,200 tonnes)
– Options 106,307,600 tonnes(increase 3,275,000 tonnes)
Verdict
– Short-term be aware of high level taking gains.