Ferrous Market Updates
– MySteel Rebar Inventory: Rebar production 3.83 million tonnes, down 0.03% w-o-w. Mills inventory 3.43 million tonnes, up 3.63% w-o-w. Circulation inventory 8.55 million tonnes, up 1.57% w-o-w.
– CISA: mid-July major mills crude steel daily production 2.14 million tonnes, up 0.36% from early July. Pig iron 1.91 million tonnes, down 0.42% from early July.
Macro
– China Ministry of Industry and Information Technology department has held two conferences during this week to appeal control new steel capacity and iron ore price was irrational currently.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 22nd)
– Futures 75,496,100 tonnes(increase 903,700 tonnes)
– Options 113,117,600 tonnes(increase 330,000 tonnes)
Verdict
– Short-term neutral to bearish.