Ferrous Market
– Iron ore 45 port arrivals at 26.57 million tonnes, up 983,000 tonnes w-o-w. Northern six port arrivals at 13.30 million tonnes, up 1.96 million tonnes w-o-w.
– MySteel Australia and Brazil iron ore total delivery at 25.64 million tonnes, up 1.587 million tonnes. Australia iron ore delivery 17.97 million tonnes, up 1.53 million tonnes w-o-w. Australia delivery to China 15.59 million tonnes, up 1.296 million tonnes w-o-w. Brazil iron ore delivery 7.667 million tonnes, up 62,000 tonnes w-o-w.
– Australia mining company Mineral Resources Q2 production 4.195 million tonnes, up 22% from Q1, up 65.5% y-o-y. Q2 iron ore sales 4.43 million tonnes, up 52.9% from Q1, up 34% y-o-y.
– CISA: July China crude steel produced at 3.01 million tonnes per day, down 1.34% m-o-m. Pig iron produced 78.18 million tonnes, up 8.81% y-o-y.
– South-eastern asia, mid-eastern and Pakistein steel import orders from China recovered. However south Asian countries import is weak.
Downstream
– China Ministry of Information and Technology: Cement companies are operating in better profit, however capacity cut is major task of cement industry. China will focus on cut capacity of both cement and flat glass.
SGX Iron Ore 62% Futures& Options Open Interest(Aug 18th)
– Futures 81,231,900 tonnes(increase 2,180,200 tonnes)
– Options 117,661,900 tonnes(increase 3,819,000 tonnes)
Verdict
– Short-term neutral.