Ferrous Market
– DCE added BX Steel pelletizing fine, IOC6, Kumba and Ukraine pelletizing fine into deliverable brands. The increase on deliverable iron ores would decrease the market corner chances during and before delivery month.
– Ganggu Construction Steel Inventory: production 4.999 million tonnes, down 27,600 tonnes w-o-w. Mills inventory 5.91 million tonnes, up 345,600 tonnes w-o-w. Circulation inventory 7.73 million tonnes, up 896,600 tonnes w-o-w.
– MySteel Rebar Inventory: Rebar production 3.34 million tonnes, down 3.15% w-o-w.Mills inventory 3.06 million tonnes, up 5.89% w-o-w. Circulation inventory 5.86 million tonnes, up 21.95% w-o-w.
– Tangshan 10 sample steel mills pig iron before tax 3118 yuan/tonne, billet cost 3957 yuan/tonne, up 141 yuan/tonne w-o-w. Gross profit -97 yuan/tonne, down 91 yuan/tonne.
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Macro
– IMF warned that financial assets and real economy are disproportionate. Financial assets are facing downside risk if investors revalue the global economy rationally.
SGX Iron Ore 62% Futures& Options Open Interest(Jan 27th)
– Futures 86,935,900 tonnes(increase666,400 tonnes)
– Options 50,119,200 tonnes(increase 1,505,000 tonnes)
Verdict
– Short-term bearish
