Ferrous Market
– Steelbank construction steels inventory 2.8896 million tonnes, up 17.31% w-o-w. HRC inventories 1.8673 million tonnes, up 0.28% w-o-w.
– Hebei steel mills indicated the pandemic spread in Hebei recently caused the road transportation cost up 15% -50%.
– Bureau of Meterology in Australia indicated the Hurricane previously decreaed to a normal wind in late Friday.
– Some northern iron ore traders in China indicated domestic pellitising iron ore potentially tight during the entire first quarter of 2021, because shortage on explosives.
Macro
– U.S. January Markit Manufacturing PMI 59.1, last 56.5, previous 57.1, a historical high.
SGX Iron Ore 62% Futures& Options Open Interest(Jan 22nd)
– Futures 83,204,000 tonnes(increase1,257,000 tonnes)
– Options 47,259,200 tonnes(increase 890,000 tonnes)
Verdict
– Short-term neutral