Verdict:
• Short-run Neutral.
Macro:
• China Newspaper saw credit growth rebound in August, when policy makers are likely to use RRR cuts and other financial tools to flexibly maintain at low cost funding to the banking system.
• Guangzhou, China scrapped price limit on new homes by decreasing the mortgage rate at Loan Prime Rate – 10bps. Guangzhou became the first city to adjust mortgage rate lower than loan prime rate in China. The second home buying down payment rate decreased from 70% to 40%.
Iron Ore Key Indicators:
• Platts62 $116.80, -0.90, MTD $118.25. Although the primary market of seaborne iron ore was quiet last week, the secondary market maintained active. The current China domestic iron ore became more cost-effective to seaborne.
SGX Iron Ore 62% Futures& Options Open Interest (Sep 8th)
• Futures 113,771,900 tons(Increase 1,579,900 tons)
• Options 104,486,900 tons(Increase 605,000 tons)
Steel Key Indicators:
• MySteel surveyed the rebar production loss at 55 yuan/ton in August in China, down 144 yuan from July. HRC production margin at 67 yuan/ton, down 62 yuan from July.
Coal Indicators:
• The FOB Australia market gained popularity in Aisa market, as the bid went higher. There were at least two full laycans of HCCA bidding at $266- 267, with no offers provided, which had already increased by $4 from a day before.
