Ferrous Market
– Mysteel surveyed Australia port overhaul potentially impact 1.37 million tonnes of delivery. In addition, Geraldton No.5 port delivery is impacted by sea wave.
– Tangshan Fengrun area execute environment production curb from September 1st to 15th, majorly restricting blast furnace, steel-making and rolling mills.
– MySteel 45 ports iron ore arrived 24.55 million tonnes, down 439,000 tonnes w-o-w. Northern six ports 12.85 million tonnes, down 933,000 tonnes w-o-w.
– MySteel Australia and Brazil iron ore total delivery at 26.56 million tonnes, up 46,000 tonnes. Australia iron ore delivery 17.65 million tonnes, down 1.32 million tonnes w-o-w. Australia delivery to China 14.31 million tonnes, down 2.02 million tonnes w-o-w. Brazil iron ore delivery 8.91 million tonnes, up 1.36 million tonnes w-o-w. Global iron ore delivery 33.04 million tonnes, up 250,000 tonnes w-o-w.
China Downstream
– China currently operate 2980 infrastructure projects totaled 1.51 trillion yuan. August new started projects up 51.64% from July.
SGX Iron Ore 62% Futures& Options Open Interest(Sep 1st)
– Futures 73,258,200 tonnes(increase 510,500 tonnes)
– Options 102,523,700 tonnes(increase 550,000 tonnes)
Verdict
– Short-term neutral.