Ferrous Market
– MySteel Rebar Inventory: Rebar production 3.60 million tonnes, up 0.03% w-o-w.Mills inventory 2.33 million tonnes, up 0.15% w-o-w. Circulation inventory 4.5 million tonnes, down 7.68% w-o-w.
– Mongolia built a “green area” at the port to help the virus tests on coal truck drivers. Thus port operation became more efficient, however current export volume is still far from normal circumstances.
– Tangshan 10 sample steel mills pig iron before tax 2462 yuan/tonne, billet cost 3199 yuan/tonne, up 18 yuan/tonne w-o-w. Gross profit 381 yuan/tonne, down 38 yuan/tonne.
– World Steel Association: October 64 countries crude steel production 161.9 million tonnes, up 7% y-o-y.
Macro
– China Vice PM Liu He announced housing strategy over the next five year:Housing market is important, which has impact on investment, consumption, living and the country’s development. Zero tolerance on speculating on living houses.
SGX Iron Ore 62% Futures& Options Open Interest(Nov25th)
– Futures 72,963,000 tonnes(increase 411,800 tonnes)
– Options 79,474,500 tonnes(increase 250,000 tonnes)
Verdict
– Short-term neutral