Ferrous Market
– Mysteel 45 major ports iron ores inventory 113.46 million tonnes, down 569,600 tonnes w-o-w. Daily evacuation 3.16 million tonnes, up 50,000 tonnes w-o-w. Austrilian iron ores inventory 61.24 million tonnes, down 1.3979 million tonnes w-o-w. Brazil iron ores inventory 26.53 million tonnes, up 810,900 tonnes w-o-w. 168 ships at ports up 9 w-o-w.
– MySteel surveyed 247 steel mills operation rate at 91.41%, up 0.26% w-o-w, up 2.86% y-o-y. Blast furnace utilisation rate at 94.75%, up 0.25% w-o-w, upo 6.82% y-o-y. Daily pig iron production at 2.52 million tonnes, up 6,600 tonnes w-o-w.
– DCE sent a notice saying to increase risk control practices and punish illegal trading.
Macro
– PBOC will use more flexible monetary tools to keep liquidity at reasonably ample level and bring down financing cost. China’s economy showed sings of recovery in the second quarter. Analysts expect the economy to extend the trend into the second half. Financial deficit ratio increased from 2.8% to 3.6%.
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SGX Iron Ore 62% Futures& Options Open Interest(Aug 6th)
– Futures 72,194,800 tonnes(increase 1,627,500 tonnes)
– Options 107,416,400 tonnes(increase 4,835,800 tonnes)
Verdict
– Short-term correction.