Ferrous Market
– MySteel 45 ports iron ore inventory at 113.1 million tonnes, up 687,600 tonnes w-o-w. Daily evacuation 3.11 million tonnes down 167,000 tonnes w-o-w. Australia iron ore on ports at 57.35 million tonnes down 504,700 tonnes w-o-w. Brazil iron ore on ports at 29.80 million tonnes up 1.35 million tonnes w-o-w. 188 ships at ports up 3 ships w-o-w.
– Mysteel researched 247 blast furnace operation rate at 91.49%,unchanged from previous week. Utilisation rate 94.64%, up 0.15% w-o-w. Daily pig iron production 2.5193 million tonnes, down 4,100 tonnes.
– Brazil iron ore delivery picked up and tend to replace some Australia concentrates shortage on ports. Some physical traders believed Carajas is unestimated and will become more popular compared to major mid-grade iron ore sources.
– Mills start to shift furnace input to more pellets and lumps, when concentrates are tight inventory on ports as well as expensive.
– Tangshan execute a production curb in 28th, market hasn’t expect this curb and iron ore correct following this sentiments yesterday.
SGX Iron Ore 62% Futures& Options Open Interest(Aug 27th)
– Futures 86,972,900 tonnes(increase 262,000 tonnes)
– Options 126,911,900 tonnes(increase 410,000 tonnes)
Verdict
– Short-term neutral.