Ferrous Market
– CISA held an internet conference with Rio Tinto, suspecting the high premium physical trades on platform. Rio indicated would find more transparent and effective way to help creating new pricing strategies with end-users.
– Rio indicated the previous suspension miner which destroyed native sites, was not included into production target. Some media has misread this information.
– MySteel Australia and Brazil iron ore total delivery at 22.72 million tonnes, down 1.11 million tonnes w-o-w. Australia iron ore delivery 15.69 million tonnes, down 1.66 million tonnes w-o-w. Australia delivery to China 13.7 million tonnes, down 668,000 tonnes w-o-w. Brazil iron ore delivery 7.03 million tonnes, up 553,000 tonnes w-o-w. Global iron ore delivery 29.6 million tonnes, down 1.69 million tonnes w-o-w.
– National Bureau of Statistics: Jan -Nov China crude steel production 961 million tonnes, up 5.5% y-o-y. Pig iron production 812.9 million tonnes, up 4.2% y-o-y. Steel products 1.2 billion tonnes, up 7% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest(Dec 15th)
– Futures 73,795,700 tonnes(increase 692,900 tonnes)
– Options 63,139,900 tonnes(decrease 760,000 tonnes)
Verdict
– Short-term neutral