Daily Ferrous Physical Review Sep 3rd

Ferrous Market
–    Vale started a level-1(lowest level) emergency protocol for Paracatu and Patrimonio dikes. The preventive measure doesn’t require the evacuation of the population and non impact Vale’s 2020 output.
–    Mysteel 64 sample steel mills seaborne sintered iron ore inventory 16.53 million tonnes. Seaborne iron ore turnover in 24 days.
–    Ganggu Construction Steel Inventory: production 5.72 million tonnes, down 31,200 tonnes w-o-w. Mills inventory 5.01 million tonnes, down 231,600 tonnes w-o-w. Circulation inventory 11.43 million tonnes, up 42,900 tonnes w-o-w.
–    MySteel Rebar Inventory: Rebar production 3.82 million tonnes, up 0.45% w-o-w. Mills inventory 3.67 million tonnes, down 3.64% w-o-w. Circulation inventory 8.92 million tonnes, up 1.54% w-o-w.

China Downstream
–    China august machinery vehicles sales increase significantly contributed by the increase on infrastructure projects. Truck sold 128,000 vehicles, up 75% y-o-y.

SGX Iron Ore 62% Futures& Options Open Interest(Sep 2nd)
–    Futures 74,387,100 tonnes(increase 1,128,900 tonnes)
–    Options 104,205,700 tonnes(increase 1,682,000 tonnes)

Verdict
–    Short-term neutral.

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