Ferrous Market
– Ukraine export 27.03 million tonnes of iron ore from this January to July, up 16% y-o-y.
– China National Statistic Bureau: major steel enterprises crude steel daily production 2.15 million tonnes, down 0.87% from late July, up 5.14% y-o-y. Daily pig iron 1.92 million tonnes, down 0.6% from end July, up 5.39% y-o-y. Daily steel products production 1.999 million tonnes, down 8.3% from end July, up 4.95% y-o-y.
– MySteel Rebar Inventory: Rebar production 3.865 million tonnes, up 0.47% w-o-w. Mills inventory 3.63 million tonnes, up 3.99% w-o-w. Circulation inventory 8.586 million tonnes, down 0.09% w-o-w.
– Ganggu construction steel production 5.72 million tonnes, down 5,800 tonnes w-o-w. Mill inventory 5.18 million tonnes, up 36,700 tonnes w-o-w. Circulation 11.28 million tonnes,down 68,500 tonnes w-o-w.
Macro
– China central bank: China yuan saving increased by 80 billion yuan in July, residents saving accounts decreased by 719 billion yuan. Minsheng Bank analyst believed that most of saving has moved to equity market.
SGX Iron Ore 62% Futures& Options Open Interest(Aug 12th)
– Futures 76,526,700 tonnes(increase 1,732,300 tonnes)
– Options 109,771,900 tonnes(unchanged)
Verdict
– Short-term neutral.