Ferrous Market Updates
– Steelbank inventories 7.34 million tonnes, up 1.41% y-o-y. HRC inventories 1.81 million tonnes, down 1.37% y-o-y.
– Tangshan increased production curb level from last week and this week. Most of the curb is related to sintering machine. Thus decreasing usage of iron ores and cokes in Tangshan Area.
– China southern and eastern rainy season is approaching the end in coming 1-2 weeks. However flood is still discouraging some domestic transportation on commodities.
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China Housing
– China National Bureau Statistics indicated June China commercial houses sales up 40% y-o-y, created the highest of the year. The single month sales in 2 trillion yuan up 9% y-o-y, created a 3 year high. Housing market created a “V” shape reverse in H1 2020.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 17th)
– Futures 72,570,800 tonnes(increase 911,500 tonnes)
– Options 111,557,600 tonnes(increase 2,725,000 tonnes)
Verdict
– Short-term neutral to bearish.