Ferrous Market
– Steelbank Inventory: construction steel inventories 2.87 million tonnes, down 3.55% w-o-w. HRC 1.39 million tonnes, up 12.65% w-o-w
– China January to November above scale industry companies net profit 5.74 trillion yuan, up 2.4% y-o-y, up 1.7% compared to January to October. Ferrous and steel pressing down 9.9% y-o-y.
– The flat steels in Tangshan significantly dropped with very light trades.
Macro Market
– China expected down 8-10 degrees during December 28 – 31st in middle and eastern areas. Some provinces potentially see heavy snow.
– U.S. president Trump rejected 2.3 trillion yuan U.S. dollars government spending on virus and job market, which expected to cause millions of job losses and suspension on federal government.
Verdict
– Short-term neutral to bearish