Ferrous Market
– In the year 2020, China crude steel production 1.06 billion tonnes, up 7% y-o-y. Steel production 13.25 billion tonnes, up 10% y-o-y. China export 53.67 million tonnes of steel, down 16.5% y-o-y. Import steel 20.23 million tonnes, up 19.8% y-o-y.
– Steel bank construction steel inventory 9.81 million tonnes, up 9.14% w-o-w. HRC 3.39 million tonnes, down 0.31% w-o-w.
– World Steel Association indicated the January of 2021 saw crude steel up 4.8% at 162.9 million tonnes in the 64 countries contributing statistics.
– China physical coke market started the second round of decrease by 100 yuan/tonne. Coke market expected lower prices since strict environment policy in Hebei Province.
Macro
– The U.S. House passed President Biden’s $1.9 trillion stimulus plan, including a $1,400 stimulus check and a minimum wage measure.
– China Caixin February PMI 50.9, est. 51.5, last 51.5.
SGX Iron Ore 62% Futures& Options Open Interest(Feb 26th)
– Futures 65,339,600 tonnes(decrease 20,791,200 tonnes)
– Options 47,677,900 tonnes(decrease 7,794,300 tonnes)
Verdict
– Short-term neutral.
