Ferrous Market
– Ganggu Construction Steel Inventory: production 1.92 million tonnes, up 2.73% w-o-w. Mills inventory 2.96 million tonnes, down 8.40% w-o-w. Circulation inventory 5.38 million tonnes, down 5.52% w-o-w.
– MySteel 45 port previous week iron ore arrived 24.99 million tonnes, down 1.58 million tonnes w-o-w. Northern six ports arrivals at 13.78 million tonnes, up 480,000 tonnes w-o-w.
– MySteel Australia and Brazil iron ore total delivery at 26.51 million tonnes, up 873,000 tonnes. Australia iron ore delivery 18.97 million tonnes, up 996,000 tonnes w-o-w. Australia delivery to China 16.33 million tonnes, up 747,000 tonnes w-o-w. Brazil iron ore delivery 7.54 million tonnes, down 123,000 tonnes w-o-w.
– CISA surveyed major steel companies daily crude steel production at 2.16 million tonnes, up 7,600 tonnes from early August.
– China custom data indicated Jan – Jul China export flat steels 20.12 million tonnes, down 15.5% y-o-y. Jan- Jul long steel export 4.41 million tonnes, down 30.9% y-o-y.
– World Steel Association: Global crude steel demand down 2.5% at 152.7 million tonnes in July, 2020. China crude steel production up 9.1% at 93.40 million tonnes in July, up 9.1% y-o-y. Japan produced 6 million tonnes, down 27.9% y-o-y. Korea produced 5.5 million tonnes, down 8.3% y-o-y. Germany produced 2.4 million tonnes, down 24.7% y-o-y. U.S. produced 5.2 million tonnes, down 29.4% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest(Aug 25th)
– Futures 85,817,700 tonnes(increase 1,566,900 tonnes)
– Options 125,196,900 tonnes(increase 650,000 tonnes)
Verdict
– Short-term bearish.