Ferrous Market
– Steelbank: construction steel inventory 4.49 million tonnes, down 12.91% w-o-w. HRC inventory 1.67 million tonnes, down 14.44% w-o-w.
– China October crude steel production 92.2 million tonnes, up 12.7 y-o-y. Jan – Oct crude steel production 873.93 million tonnes, up 5.5% y-o-y.
– China Ministry of Industrial and Information Technology researcher indicated currently making benchmark for HBI, and will import HBI as normal commodity instead of waste metals.
China Macro
– Asean 10 countries signed RCEP(Regional Comprehensive Economic Partnership) with China, Japan, Korea, Australia and New Zealand. The new member country in this RCEP will be exempt of more taxes in many categories.
– Jan – Oct China Housing investment increase 6.3% y-o-y, Jan -Oct up 5.6% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest(Nov 13th)
– Futures 64,706,500 tonnes(increase 859,500 tonnes)
– Options 76,589,500 tonnes(increase 157,200 tonnes)
Verdict
– Short-term neutral