Ferrous Market
– Municipality of Brumadinho, Minas Gerais,have suspended for 7 days, or until the facts of the December 18 accident are clarified.A Vale miner Corrego do Feijao landslide in 18th caused 1 death. However Vale claimed the impact is not included in the production target since this miner is closed after the dam collapse accident at the beginning of the year 2019.
– Steelbank Inventory: construction steel inventories 2.97 million tonnes, down 6.89% w-o-w. HRC 1.23 million tonnes, down 3.35% w-o-w.
– During the weekends Tangshan narrow belt up 230 yuan. Tangshan billet up 270 yuan from Saturday to Monday morning. SHFE HRC reached limit-up this morning. The price increase in iron ore has finally conduct to mid-stream industries. The ferrous industry started a stocking sentiment.
– DCE sent article saying currently fundamental change are key driver for iron ore market. The bargaining power on buyers of iron ore have yet created, appealing both physical and futures related institutions to help creating pricing mechanism.
– China Rizhao, Lanshan and Lanqiao ports stopped operation due to level I pollution alert. The resumption to be announced.
China Coal Market
– China physical coke up 50 yuan/tonne during the weekends, the accumulated tenth round of price increase total up 500 yuan.
SGX Iron Ore 62% Futures& Options Open Interest(Dec 18th)
– Futures 76,227,900 tonnes(increase 782,300 tonnes)
– Options 65,932,400 tonnes(increase 670,000 tonnes)
Verdict
– Short-term neutral to bullish