Ferrous Market
– MySteel 45 ports iron ore inventories at 128.12 million tonnes, up 482,500 tonnes w-o-w. Daily evacuation 3.1986 million tonnes, up 68,000 tonnes w-o-w. Australia iron ore 60.72 million tonnes, up 418,000 tonnes w-o-w. Brazil iron ore 39.56 million tonnes, up 174,000 tonnes w-o-w. 133 ships at ports, down 16.
– Mysteel researched 247 blast furnace operation rate at 86.46%, down 1.04% w-o-w. Utilisation rate 92.27%, down 0.2% w-o-w. Daily pig iron production 2.456 million tonnes, down 5,400 tonnes w-o-w.
– MySteel: 10 mills of Tangshan shut-down in the year 2020, equal to 23.35 million tonnes of blast furnace capacity, which is also equal to a decrease of 62,500 tonnes of steel production on daily basis.
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Macro
– E-House(China housing research company): H2 China cities housing strategy became tight, Q3 living houses leverage decrease slightly. Estimate Q4 houses growth rate slower compared to Q3 as well as last Q4.
SGX Iron Ore 62% Futures& Options Open Interest(Nov 6th)
– Futures 60,154,300 tonnes(decrease 267,600 tonnes)
– Options 74,563,300 tonnes(unchanged)
Verdict
– Short-term neutral.