Ferrous Market
– Steelbank Inventory: construction steel inventories 3.33 million tonnes, down 8.18% w-o-w. HRC 1.34 million tonnes, down 7.79% w-o-w.
– A CISA official indicated iron ore spike has increased the industry risk and harm to the stabilisation on the ferrous chain, and suspect some market squeeze and manipulation.
– DCE started a new inspection on abnormal trading and illegal speculation on certain products including iron ore futures.
China Coal Mine Accidents and Ferrous Industry Statistics
– A coal miner accident in Chongqing, a western China city, caused 23 death and 1 survivor. Chongqing experienced the second coal mine disaster of the year, the last one happen in September 27th.
– China safety management authorities have adopted several measurements and inspections on the safety of coal mines and restrict over production on coals.
– China automobile association indicated auto sales reached 2.73 million tonnes in November, up 6.2% m-o-m, up 11.1% y-o-y.
– China Customs: Jan- Nov iron ore import 1.073 trillion tonnes, up 10.9% y-o-y. Import average price 694.5 yuan/tonne, up 5.8% y-o-y. Jan -Nov import crude oil 504 million tonnes, up 9.5% y-o-y. Import average price 2262.2 yuan/tonne, down 31.3% y-o-y. Coal import 265 million tonnes, down 10.8% y-o-y. Import average price 483.6 yuan/tonne, down 9.8% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest(Dec 4th)
– Futures 65,611,700 tonnes(increase 1,801,800 tonnes)
– Options 58,724,900 tonnes(increase 2,395,000 tonnes)
Verdict
– Short-term neutral