Ferrous Market
– Brazil authorities hope to finalise later this month a settlement with Vale SA for the Brumadinho Dam collapse occurred in early 2019. Vale presented a value of about 21b reais($4b), while Minas Gerais outlined 28b reais in material damages, plus 26b reais in moral damages.
– Tangshan 10 sample steel mills pig iron before tax 2858 yuan/tonne, billet cost 3651 yuan/tonne, up 70 yuan/tonne w-o-w. Gross profit 149 yuan/tonne, down 10 yuan/tonne.
– MySteel Rebar Inventory: Rebar production 3.495 million tonnes, down 0.22% w-o-w. Mills inventory 2.597 million tonnes, up 0.52% w-o-w. Circulation inventory 3.96 milliontonnes, up 8.71% w-o-w.
– MySteel estimate China December pelletizing iron ore production 23 million tonnes, down 500,000 tonnes m-o-m, up 1.399 million tonnes y-o-y.
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Macro
– U.S. ADP Private sector employment decreased by 123,000 jobs from November, first time seeing a negative number since April 2020. Estimated increase 75,000 jobs, last 307,000 jobs.
– Asian stocks advanced with U.S. futures in Asian morning and overnight after Democrats took control of the Senate following key elections, paving the way for President elect Joe Biden to implement his agenda.
– China National Development and Reform Commission sent documents regarding elimination on the illegal charges on water, electricity, gas and heat supply.
SGX Iron Ore 62% Futures& Options Open Interest(Jan 6th)
– Futures 65,182,300 tonnes(increase 683,500 tonnes)
– Options 38,594,200 tonnes(increase 1,035,000 tonnes)
Verdict
– Short-term neutral