Ferrous Market
– Steelbank construction steels inventory 10.29 million tonnes, up 0.35% w-o-w. HRC inventories 3.14 million tonnes, up 4.12% w-o-w.
– Tangshan held a emergent meeting on March 13th, the mayor of Tangshan required manufacturing industry to follow the production curb strictly, to cut 50% of carbon emission.
– China physical coke down 100 yuan/tonne.
– Vale informs that it has started commissioning to increase wet processing production on the Timbopeba site, part of the Mariana Complex, in line with the previously announced in its Production and Sales Report on February 3rd, 2021. At the end of commissioning process, which is expected to last 2 months, the Timbopeba site will operate with an iron ore production capacity of 12 Mtpy, adding 7 Mtpy to the current capacity of the site.
– China January and February crude steel production 174.99 million tonnes, up 12.9% y-o-y. Finished steel production 209.53 million tonnes, up 23.6% y-o-y.
Macro
– The report of the China’s political conference of the next 15 years said: Maintain or decrease the macro leverage ratio. Expand the development on clean and reusable energy.
– China northern and north western cities had heavy air pollution this week. Potentially more manufacturing related companies would require to control emission.
SGX Iron Ore 62% Futures& Options Open Interest (Mar 12th)
– Futures 75,057,700 tonnes(Decrease 25,500 tonnes)
– Options 55,337,900 tonnes(Increase 317,500 tonnes)
Verdict
– Short-term neutral to bearish.
