Ferrous Market Updates
– Steelbank Inventory: rebar inventories 7.52 million tonnes, up 2.38% w-o-w. HRC 1.84 million tonnes, up 1.85%.
– China H1 pig iron production 432.68 million tonnes, up 2.2% y-o-y. Crude steel production 499.01 million tonnes, up 1.4% y-o-y.
– China metallurgical research institution said China steel per GDP will decrease in long term, which will restrict steel consumption. At the same time, steel production is remain strong. New build capacity will land in Q4.
– ArcelorMittal México says that its mill in Lázaro Cárdenas was partially closed on 23 July following an indictment by local authorities for a series of irregularities, including not having an operating license and having debts in the payment of its contributions for the last six years. The steel maker tells Kallanish that the city council also demanded a retroactive payment of MXN 130 million($5.76 million), in addition to a monthly increase in tax.The ArcelorMittal integrated mill in Lázaro Cárdenas has a long and flat steelproduction capacity of 2.4 million tonnes/year and 4m t/y, respectively.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 24th)
– Futures 76,743,300 tonnes(increase 707,100 tonnes)
– Options 114,377,600 tonnes(increase 100,000 tonnes)
Verdict
– Short-term bearish.