Ferrous Market
– Ganggu Construction Steel Inventory: production 5.28 million tonnes, up 19,400 tonnes w-o-w. Mills inventory 3.37 million tonnes, down 178,400 tonnes w-o-w. Circulation inventory 7.20 million tonnes, down 729,800 tonnes w-o-w.
– Decmil Group signed 22 million dollar contract with Rio Tinto on the west Pilbara Mesa J miner’s structure and transportation service, estimated completing by the end of 2021.
– Tangshan removed air pollution level II alert started from Nov 18th. Tangshan will keep following the winter air protection strategy.
– MySteel Australia and Brazil iron ore total delivery at 25.89 million tonnes, up 4.51 million tonnes w-o-w. Australia iron ore delivery 18.35 million tonnes, up 2.48 million tonnes w-o-w. Australia delivery to China 14.82 million tonnes, up 2.65 million tonnes w-o-w. Brazil iron ore delivery 7.54 million tonnes, up 2.04 million tonnes w-o-w. Global iron ore delivery 32.83 million tonnes w-o-w, up 5.02 million tonnes w-o-w.
– In the week from Nov 16-22nd, Australia port maintenance impact delivery around 910,000 tonnes, Brazil impact 660,000 tonnes.
China Macro
– China National Development and Reform Department: October China above designated scale industrial electricity generation up 4.6% y-o-y. Jan – Oct up 1.4% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest(Nov 17th)
– Futures 67,049,000 tonnes(increase 1,251,700 tonnes)
– Options 76,914,500 tonnes(increase 10,000 tonnes)
Verdict
– Short-term neutral