Ferrous Market
– MySteel Australia and Brazil iron ore total delivery at 23.71 million tonnes, down 2.18 million tonnes w-o-w. Australia iron ore delivery 16.68 million tonnes, down 1.67 million tonnes w-o-w. Australia delivery to China 13.95 million tonnes, down 864,000 tonnes w-o-w. Brazil iron ore delivery 7.03 million tonnes, down 506,000 tonnes w-o-w.
– Tangshan 32 mills daily production impacted by maintance at 43,700 tonnes in November. Mysteel estimated this number decrease to 24,600 tonnes per day in December.
– Australia iron ore maintance from Nov 23- 29th estimated reduce 2.06 million tonnes of delivery.
– Ganggu Construction Steel Inventory: production 5.31 million tonnes,up 33,100 tonnes w-o-w. Mills inventory 3.39 million tonnes, up 22,300 tonnes w-o-w. Circulation inventory 6.7 million tonnes, down 495,100 tonnes w-o-w.
Macro
– U.S. Dow Jones Index broke 30000 up 1.54% and created historical high, supported by few factors including the president election uncertainty elimination, vaccines, as well as global central banks stimulation.
– China November 11 major auto makers produced 1.61 million autos, up 9.6% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest(Nov24th)
– Futures 72,551,200 tonnes(increase 1,315,900 tonnes)
– Options 79,224,500 tonnes(increase 350,000 tonnes)
Verdict
– Short-term neutral to bearish