Ferrous Market
– Steelbank Inventory: construction steel inventories 5.80 million tonnes, down 8.15% w-o-w. HRC 2.09 million tonnes, down 3.33% w-o-w.
– China ferrous physical market rebounded over weekends, coke up 50 yuan as the six round of increase. Eastern steel mills rebar up 50 yuan in Monday morning. Eastern China heavy scrap up 50 yuan.
– China Ministry of Information and Industry Technology: Crude steel Jan – Sep apparent consumption up 8.94% y-o-y to 769 million tonnes, up 1.7% from Jan -Aug.
– China northern steel mills indicated they have started winter purchase mode, thus purchase iron ores according to real demand instead of expectation.
Macro
– U.S. president election on Nov 3rd, however vote potentially not out on time since some states votes would be delayed due to pandemic impact, which would add some uncertainties to financial market. Shanghai equities and Asian commodities bounced up and corrected due to cautious mind later this morning.
– China Markit PMI November 53.6, est. 53.0, last 53.0.
SGX Iron Ore 62% Futures& Options Open Interest(Oct 30th)
– Futures 59,581,600 tonnes(decrease 17,304,900 tonnes)
– Options 73,433,300 tonnes(decrease 27,361,000 tonnes)
Verdict
– Short-term neutral.