Ferrous Market Updates
– MySteel researched 247 steel mills operation rate at 91.02%, up 0.26^ w-o-w, up 5.08% y-o-y. Blast furnace utilisation rate 93.08%, up 0.12% w-o-w, up 6.72% y-o-y. Daily pig iron production at 2.48 million tonnes, up 3,200 tonnes, up 178,800 tonnes w-o-w.
– Mysteel 45 ports iron ores inventory 113.25 million tonnes, up 2.78 million tonnes w-o-w. Daily evacuation 2.8 million tonnes, down 302,400 tonnes w-o-w. Austrilian iron ores inventory 63.21 million tonnes, up 1.88 million tonnes w-o-w. Brazil iron ores inventory 24.99 million tonnes, up 1.29 million tonnes w-o-w. 168 ships at ports up 8 w-o-w.
– Australia Miner Mount Gibson Q2 iron ore sales 1.16 million tonnes, up 12.9% compared to Q1. Fiscal 2020 sales expected 4.94 million tonnes.
Cement
– China Cement has entered an off-season since many provinces are transport cements to southern areas, pricing are competitive at local markets.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 23rd)
– Futures 76,036,200 tonnes(increase 540,100 tonnes)
– Options 114,277,600 tonnes(increase 830,000 tonnes)
Verdict
– Short-term neutral to bearish.