Ferrous Market
– China September and October steel export orders increase, which could result in the export volume increase in following months of the year.
– Tangshan researched 10 sample steel mills profit at 401 yuan/tonne, up 99 yuan/tonne w-o-w.
– MySteel Rebar Inventory: Rebar production 3.64 million tonnes, up 1.18% w-o-w. Mills inventory 2.47 million tonnes, down 11.68% w-o-w. Circulation inventory 5.46 million tonnes, down 11.16% w-o-w.
China Northern Pollution Weather & Eastern China Port Congestion
– China meteorology predicted heavy weather pollution in northern China areas next week, Tangshan and many northern cities responded to make further practices to decrease industrial pollution.
– As Shanghai Import Expo ended, the port congestion in Eastern China expected to ease before or in next week.
SGX Iron Ore 62% Futures& Options Open Interest(Nov 11th)
– Futures 62,786,500 tonnes(increase 1,102,900 tonnes)
– Options 76,432,300 tonnes(increase 575,000 tonnes)
Verdict
– Short-term neutral to bullish