Ferrous Market
– Steelbank Inventory: rebar inventories 7.499 million tonnes, down 1.34% w-o-w. HRC 1.88 million tonnes, down 0.11% w-o-w.
– Metinvest BW Q2 iron ore concentrates produced 7.57 million tonnes, down 1% from Q1. H1 iron ore concentrates produced 15.17 million tonnes, up 5% y-o-y.
Macro
– China railroads totaled investments 67.1 billion yuan from Jan – July, up 3.6% y-o-y. Among the investments, big and mid size infrastructure projects accounts for 49.9 billion yuan, up 11.3% y-o-y.
– China July PPI -2.4% y-o-y, last -3%, forecast -2.5%. China July CPI 2.7% y-o-y, last 2.5%, forecast 2.6%.
SGX Iron Ore 62% Futures& Options Open Interest(Aug 7th)
– Futures 73,262,600 tonnes(increase 1,067,800 tonnes)
– Options 108,664,400 tonnes(increase 1,248,000 tonnes)
Verdict
– Short-term neutral to bearish.