Ferrous Market
– Steelbank: China contruction steel inventory 6.73 million tonnes, down 11.18% w-o-w. HRC 2.38 million tonnes, down 6.8% w-o-w.
– MySteel researched Tangshan 10 sample steel mills profit 332 yuan/tonnes, up 67 yuan w-o-w. Billet cost after tax down 7 yuan w-o-w.
– China Jan-Oct iron ore import at 975 million tonnes, up 11.2% y-o-y, average price 683.3 yuan/tonne, up 3.8% y-o-y. China Jan –Oct steel import 17.71 million tonnes, up 73.9% y-o-y. Jan-Oct steel export 44.43 million tonnes, down 19.3% y-o-y.
–
Macro
– Many China institutes predicted Oct CPI growth rate will decrease to less than 1% because of the high basis in previous year as well as pig price drop.
– Some major media sent prediction overweekends on the U.S. election result based on the votes. However investment and financial market is concerning the uncertainty before the official Inauguration in January.
SGX Iron Ore 62% Futures& Options Open Interest(Nov 6th)
– Futures 60,388,900 tonnes(increase 234,600 tonnes)
– Options 74,603,300 tonnes(increase 40,000 tonnes)
Verdict
– Short-term neutral.