Ferrous Market
– Steelbank construction steels inventory 10.25 million tonnes, up 4.51% w-o-w. HRC inventories 3.27 million tonnes, up 3.38% w-o-w.
– MySteel: January and February China export 10.14 million tonnes of steels, up 29.9% y-o-y. China import 2.395 million tonnes of steel, up 17.4% y-o-y.
– China custom statistic indicated January and February iron ore import 182 million tonnes, up 2.8% y-o-y. Import average price 942.1 yuan/tonne, up 46.7% y-o-y.
– CISA executive chairman proposed on China political conference: Target to give tax exemption for China local iron ore miners in next 5- 10 years. Remove license on illegal miners. Increase the VAT tax return on scraps. Create 1- 2 offshore iron ore resource companies. Create prime coking coal trading venues.
Macro
– U.S. senate passed the legislation on a party line 50-49 vote and Saturday, a $1.9 trillion, second-biggest economic stimulus in U.S. history.
– February Global PMI 55.6, up 1.2% from January, indicating a global economy recovery.
SGX Iron Ore 62% Futures& Options Open Interest(Mar 5th)
– Futures 72,602,700 tonnes(Increase 2,138,100 tonnes)
– Options 52,195,400 tonnes(Increase 1,550,000 tonnes)
Verdict
– Short-term neutral.
