Ferrous Market
– Tangshan 10 sample steel mills pig iron before tax 3174 yuan/tonne, billet cost 4024 yuan/tonne, down 22 yuan/tonne w-o-w. Gross profit 266 yuan/tonne, down 98 yuan/tonne.
– MySteel Rebar Inventory: Rebar production 3.49 million tonnes, up 3.28% w-o-w. Mills inventory 5.30 million tonnes, up 1.49% w-o-w. Circulation inventory 13.02 million tonnes, down 0.16% w-o-w.
– China HRC market saw a marginal weakening on purchasing from end-users. However export market was very active. The decrease on export tax return would potentially impact the HRC demand in the next half year of 2021.
– Ferrous market correction currently under the “Carbon Neutralise” strategy during political conference as well as the massive decrease on blast furnaces in many areas. Daily pig iron production expected to reach a two year low in March. However some blast furnaces start to recover producing late this week or early next week since political conference end today.
Macro
– U.S. president Biden’s 1.9 $trillion Covid-19 relief bill passed with a 220- 211 vote, sending to the president for signature. Biden loaded up on extra vaccines, double Johnson&Johnson order to 200 million, which would secured for twice the U.S. adult population.
SGX Iron Ore 62% Futures& Options Open Interest (Mar 10th)
– Futures 74,918,100 tonnes(Increase 1,048,000 tonnes)
– Options 54,040,400 tonnes(Increase 53,000 tonnes)
Verdict
– Short-term neutral to bearish.
