Ferrous Market
– Steelbank Inventory: construction steel inventories 3.19 million tonnes, down 7.92% w-o-w. HRC 1.27 million tonnes, down 0.51% w-o-w.
– Some physical traders heard FMG increase discount from 7% to 10% on FMG SSF, and 4% to 8% on FMG BF.
– Jan 4th : MySteel 45 ports iron ore inventories at 124.16 million tonnes, up 72,700 tonnes w-o-w. Daily evacuation 2.80 million tonnes, down 238,600 tonnes w-o-w. Australia iron ore 59.17 million tonnes, up 542,000 tonnes w-o-w. Brazil iron ore 40.78 million tonnes, down 614,000 tonnes w-o-w. 158 ships at ports, up 3.
– China Shandong physical coke price up 100 yuan/tonne start from Jan 5th.
Macro
– China December manufacturing PMI 53.0, estimate 54.7, last 54.9.
– Chinese Yuan(CNY) reached 6.54, created the lowest since June 2018.
SGX Iron Ore 62% Futures& Options Open Interest(Dec 31st)
– Futures 63,508,700 tonnes(decrease 19,094,900 tonnes)
– Options 36,624,200 tonnes(decrease 30,938,800 tonnes)
Verdict
– Short-term neutral