Ferrous Market Updates
– Steelbank Inventory: rebar inventories 7.60 million tonnes, up 1.12% w-o-w. HRC 1.88 million tonnes, up 2.04%.
– China Mettallurgical Association statistics indicated Jun China iron ore concentrates 23.77 million tonnes, up 2.7% m-o-m. Jan – Jun iron ore production 130 million tonnes, down 0.3% y-o-y. Glencore said it will lower coal production goal for 2020 to 111-117 million tonnes from previous 129 – 135 million tonnes.
Coal and Macro
– Glencore said its coal production declined 15% y-o-y to 58.1 million tonnnes in the first half of this year, due to some operations suspension in Colombia amid the Covid-19 pandemic. Thermal coal output decreased 3.8 million tonnes to 33.1 million tonnes from Australia. H1 coking coal produced 3.7 million tonnes, falling 14% y-o-y.
– China Caixin PMI July Index at 52.8, up 1.6% from June, created the new high since Feb 2011.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 31st)
– Futures 67,908,800 tonnes(increase 871,300 tonnes)
– Options 94,899,600 tonnes(increase 657,500 tonnes)
Verdict
– Short-term consolidate in high level.