Ferrous Market
– MySteel 45 ports iron ore inventories at 127.51 million tonnes, down 263,000 tonnes w-o-w. Daily evacuation 3.22 million tonnes, up 49,200 tonnes w-o-w. Australia iron ore 59.88 million tonnes, up 111,500 tonnes w-o-w. Brazil iron ore 41.61 million tonnes, up 578,900 tonnes w-o-w. 129 ships at ports, down 1 w-o-w.
– Mysteel researched 247 blast furnace operation rate at 86.46%, up 0.13% w-o-w. Utilisation rate 91.64%, down 0.47% w-o-w. Daily pig iron production 2.44 million tonnes, up 12,600 tonnes.
– Indian miner NDMC increase iron ore lump price to 400 rupee/tonne($5.37/tonne), up 9.06% from last price adjustment. Iron ore concentrates up 300 rupee/tonne($4.03/tonne), up 11.11% from last price adjustment.
– Ukraine miner Sukhaya Balka iron ore Jan –Oct production 2.2 million tonnes, down 2.5% y-o-y.
Macro
– IMF statistics indicated global economy is recovering, however service industry data indicated the pandemic spread countries have very slow growth rate on the recovering and in high risk.
– China Banking and Insurance Regulation Commission: Housing financialising has huge risk and thus need to be contained.
SGX Iron Ore 62% Futures& Options Open Interest(Nov 18th)
– Futures 68,971,200tonnes(increase 1,591,900 tonnes)
– Options 78,104,500 tonnes(increase 970,000 tonnes)
Verdict
Short-term neutral