Ferrous Market
– Steelbank construction steels inventory 8.98 million tonnes, up 45.17% compared with the week before Chinese New Year. HRC inventories 3.398 million tonnes, up 50.57% compared with the week before Chinese New Year.
– Heard Tangshan potentially execute harsh environment cut on steel rolling mills, some mills stop selling steels after hearing this news. TS billet up 90 yuan/tonne over weekends and Monday morning. MySteel estimate the impact of steel decrease 65,000 tonnes per day if the
– Last week MySteel 247 steel mills daily pig iron production 2.45 million tonnes, which was a five-year high level at same period. Iron ore inventory useable 37.5 days, 1.92 days lower than last year.
– FMG increase target delivery amount to 178- 182 million tonnes for FY 2021.
Macro
– China February Loan Prime Rate unchanged, one year Loan Prime Rate at 3.85%. LPR hasn’t change for last ten months.
SGX Iron Ore 62% Futures& Options Open Interest(Feb 19th)
– Futures 82,581,700 tonnes(increase 3,311,600 tonnes)
– Options 52,309,700 tonnes(increase 1,525,000 tonnes)
Verdict
– Short-term neutral.
