Ferrous Market
– Lianyun Port ships congested because some crew are tested positive of Covid-19. The rest of northern ports are operating normally. Ships at northern are also impacted shortly by the previous typhoon.
– MySteel Rebar Inventory: Rebar production 3.84 million tonnes, down 0.74% w-o-w. Mills inventory 3.49 million tonnes, down 0.33% w-o-w. Circulation inventory 8.59 million tonnes, down 0.16% w-o-w.
– Ganggu Construction Steel Inventory: production 5.72 million tonnes, down 9,600 tonnes w-o-w. Mills inventory 5.14 million tonnes, down 265,800 tonnes w-o-w. Circulation inventory 11.35 million tonnes, down 80,200 tonnes w-o-w.
Macro
– European July manufacture PMI reached 51.8, the highest of the year. Analysts expected European steel demand will recover 90% in Q4.
SGX Iron Ore 62% Futures& Options Open Interest(Aug 5th)
– Futures 70,567,300 tonnes(increase 522,700 tonnes)
– Options 102,580,600 tonnes(increase 1,481,000 tonnes)
Verdict
– Short-term consolidate in high level.