Ferrous Market Updates
– Steelbank Inventory: rebar inventories 9.98 million tonnes, up 16.11% w-o-w. HRC 3.47 million tonnes, up 21.45%.
– Mysteel early July crude steel production expected 2.93 million tonnes/daily, down 0.64% from end-June.
– Brazil Miners Association president Flavio Penido said Brazil can run all iron ore miners and recover the production. Mining area is strictly hygiene with advanced facilities to prevent virus infection.
Macro
– China Construction Machinery Association: June sold 24,625 excavators, up 62.9% y-o-y. Analysts expected year 2020 growth rate close to 25% compared to the year 2019.
– Tangshan level 5.1 earthquake in Jul 12th. However no direct impact on industrial productions.
– China currently brought out several restrictions to cool down the over-speculated stock market sentiments. Biggest insurance company in China, PICC announced social security funds decided to decrease 2% in next half year. China Banking and Insurance Regulation Commission announced to increase funds supervising and punish illegal financing within banking and insurance system.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 10th)
– Futures 66,717,000 tonnes(increase 587,000 tonnes)
– Options 98,947,600 tonnes(increase 80,000 tonnes)
Verdict
– Short-term be aware of high level taking gains.