Ferrous Market
– MySteel Rebar Inventory: Rebar production 3.445 million tonnes, down 0.25% w-o-w. Mills inventory 2.89 million tonnes, up 4.61% w-o-w. Circulation inventory 4.80 million tonnes, up 12.98% w-o-w.
– Ganggu Construction Steel Inventory: production 5.03 million tonnes, down 91,800 tonnes w-o-w. Mills inventory 5.56 million tonnes, up 293,900 tonnes w-o-w. Circulation inventory 6.83 million tonnes, up 616,400 tonnes w-o-w.
– Minas Gerais General Secretary Mateus Simoes said that there is a chance that an agreement will be reached at a meeting scheduled for Jan 21st. Simoes said that if an agreement is not signed at the meeting, the state will wait for Justice’s sentence.
– Tangshan 10 sample steel mills pig iron before tax 2999 yuan/tonne, billet cost 3816 yuan/tonne, up 79 yuan/tonne w-o-w. Gross profit – 6 yuan/tonne, down 79 yuan/tonne.
– Tacora Resources finished Sydvaranger Mining AS acquirements, expected Tacora annual production reach 10 million tonnes.
SGX Iron Ore 62% Futures& Options Open Interest(Jan 20th)
– Futures 77,907,600 tonnes(increase 1,555,100 tonnes)
– Options 44,819,200 tonnes(increase 395,000 tonnes)
Verdict
– Short-term neutral