Ferrous Market
– Ganggu Construction Steel Inventory: production 5.12 million tonnes, down 142,700 tonnes w-o-w. Mills inventory 5.27 million tonnes, up 335,300 tonnes w-o-w. Circulation inventory 6.21 million tonnes, up 272,500 tonnes w-o-w.
– Samarco shipped 75,000 tonnes of pellets from Brazil to Europe, first laycan after restart the operation. Samarco recovered 26% utilisation rate, with 7-8 million tonnes production in the year 2021. The company expect to reach 22-24 million tonnes annual production in the year 2029.
– MySteel Australia and Brazil iron ore total delivery at 22.84 million tonnes, down 5.62 million tonnes w-o-w. Australia iron ore delivery 17.85 million tonnes, down 2.67 million tonnes w-o-w. Australia delivery to China 14.85 million tonnes, down 2.38 million tonnes w-o-w. Brazil iron ore delivery 4.998 million tonnes, down 2.96 million tonnes w-o-w. Global iron ore delivery 28.22 million tonnes, down 5.86 million tonnes w-o-w.
– China Iron ore 45 port arrivals at 23.21 million tonnes, up 783,000 tonnes w-o-w. Northern six port arrivals at 11.56 million tonnes, up 1.44 million tonnes w-o-w.
– China eastern construction steels correct massively during this week, Tuesday Shanghai,Hangzhou and Fuzhou construction steel down 100 – 150 yuan.
– Brazil high grade concentrates including Carajas fine are currently experience shortage on ports.
Macro
– China December aggregate financing 1.72 trillion yuan. Est. 2.19 trillion yuan, last 2.13 trillion yuan.
– China December M2 up 10.1%, estimate 10.7%, last 10.7%.
SGX Iron Ore 62% Futures& Options Open Interest(Jan 12th)
– Futures 70,095,900 tonnes(increase 1,234,300 tonnes)
– Options 42,549,200 tonnes(increase 190,000tonnes)
Verdict
– Short-term neutral