Ferrous Market
– MySteel 45 ports iron ore inventories at 125.19 million tonnes, up 186,900 tonnes w-o-w. Daily evacuation 3.28 million tonnes, up 239,400 tonnes w-o-w. Australia iron ore 58.49 million tonnes, up 237,000 tonnes w-o-w. Brazil iron ore 43.59 million tonnes, down 119,800 tonnes w-o-w. 169 ships at ports, down 32.
– India financial department announced that India will stop to incur and import tariff against China HRC and CRC effective from Feb 2nd to Sep 30th in the year 2021.
– Construction steels daily trading volume in 121,600 tonnes daily, down 39.66% from December.
– MySteel researched 11 out of 18 steel mills stopped production. EAFs produced construction steel cost 4131 yuan/tonne, down 38 yuan/tonne w-o-w.
Macro
– China started researching on joining CPTPP(Comprehensive and Progressive Agreement for Trans-Pacific Partnership), to increase globalization on economy.
SGX Iron Ore 62% Futures& Options Open Interest(Feb 4th)
– Futures 74,440,600 tonnes(increase 806,100 tonnes)
– Options 44,857,500 tonnes(increase 860,000 tonnes)
Verdict
– Short-term neutral.
