Ferrous Market
– Ganggu Construction Steel Inventory: production 5.26 million tonnes, up 2,600 tonnes w-o-w. Mills inventory 4.93 million tonnes, up 124,000 tonnes w-o-w. Circulation inventory 5.94 million tonnes, up 342,400 tonnes w-o-w.
– Low aluminum iron ore demand increased as winter environment protection in China as well as high coke price.
– MySteel Australia and Brazil iron ore total delivery at 28.47 million tonnes, down 1.28 million tonnes w-o-w. Australia iron ore delivery 20.51 million tonnes, down 1.21 million tonnes w-o-w. Australia delivery to China 17.23 million tonnes, down 1.31 million tonnes w-o-w. Brazil iron ore delivery 7.95 million tonnes, down 72,000 tonnes w-o-w. Global iron ore delivery 34.08 million tonnes, down 1.48 million tonnes w-o-w.
Macro
– U.S. Manufacturing December ISM at 60.7 higher than 57.5 in November, estimate 56.6.
– China December Caixin PMI 56.3, estimate 58, last 57.8.
SGX Iron Ore 62% Futures& Options Open Interest(Jan 5th)
– Futures 64,498,800 tonnes(increase 472,100 tonnes)
– Options 37,559,200 tonnes(increase 455,000 tonnes)
Verdict
– Short-term bearish