Ferrous Market Updates
– Mysteel mills inventory 16.13 million tonnes. Inventory turnover in 23 days.
– MySteel Rebar Inventory: Rebar production 3.83 million tonnes, down 1.49% w-o-w. Mills inventory 3.31 million tonnes, down 3.22% w-o-w. Circulation inventory 8.42 million tonnes, up 2.99% w-o-w.
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Economic Data
– China Q2 GDP down 3.2% y-o-y, up 11.5% compared to Q1. H1 GDP up 1.6% y-o-y.
– National Bureau Statistics of China: Enterprises above designated size industrial value added down 1.3% in H1 2020, up 7.1% from Q1.
– China H1 electricity generation in 3.4 trillion KWH, down 1.4% y-o-y. up 5.4% from Q1.
– China H1 coal production 1.81 billion tonnes, up 0.6% y-o-y. H1 import 174 million tonnes coals, up 12.7% y-o-y, down 15.7% from Q1.
– China Q2 industry utilisation rate at 74.4%, down 2% y-o-y, up 7.1% compared with Q1. H1 industry utilisation rate 71.1%, down 5.15 y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 15th)
– Futures 70,616,200 tonnes(increase 710,700 tonnes)
– Options 107,907,600 tonnes(increase 1,600,000 tonnes)
Verdict
– Short-term be aware of high level taking gains.