Ferrous Market
– MySteel Rebar Inventory: Rebar production 3.38 million tonnes, up 5.9% w-o-w.Mills inventory 5.22 million tonnes, up 1.36% w-o-w. Circulation inventory 13.04 million tonnes, up 6.73% w-o-w.
– Tangshan stopped road transportation to port areas from March 3rd – 6th since a new round of air pollution expected to hit Tangshan Area.
– Tangshan 10 sample steel mills pig iron before tax 3196 yuan/tonne, billet cost 4046 yuan/tonne, down 24 yuan/tonne w-o-w. Gross profit 364 yuan/tonne, up 204 yuan/tonne.
– China Coal Association indicated will control coal consumption to 4.2 billion tonnes by the end of year 2025.
Macro
– U.S. triggered inflation alert, steel, woods and many commodities price significantly increased. U.S. February Markit PMI 59.8, created the highest since July, 2014.
– China political conference started in the afternoon March 4th, ended on March 10th. Environment protection is always a key subject through the political conference over last three years.
SGX Iron Ore 62% Futures& Options Open Interest(Mar 3rd)
– Futures 68,469,400 tonnes(Increase 537,300 tonnes)
– Options 49,267,900 tonnes(Increase 460,000 tonnes)
Verdict
– Short-term neutral.
