Ferrous Market Updates
– Ganggu construction steel production 5.79 million tonnes, up 0.41% w-o-w. Mills inventory 5.28 million tonnes up 4.59% w-o-w. Circulation inventory 11.25 million tonnes, up 1.17% w-o-w.
– MySteel Australia and Brazil iron ore delivery at 24.2 million tonnes, up 925,000 tonnes w-o-w. Australia delivery to China 16.46 million tonnes, up 1.998 million tonnes. Brazil delivery to China 5.99 million tonnes, down 27,000 tonnes w-o-w,.
– MySteel researched from Jul 20 -26th, Australia port overhaul impact iron ore delivery around 900,000 tonnes. Brazil port overhaul impact 1.6 million tonnes.
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Macro
– China bond bought by foreign investors up 90% to 4.26 trillion yuan over past four months, the fastest from the year 2018, which is also equal to 17.85% GDP of Q2.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 21st)
– Futures 74,592,400 tonnes(increase 1,333,300 tonnes)
– Options 113,117,600 tonnes(increase 465,000 tonnes)
Verdict
– Short-term neutral.