Ferrous Market
– Canada miner Black Iron signed a 60 million dollar contract including a project with 646 million tonnes of iron ores.
– Indian Miner Industrial Organisation FIMI indicated India needs 165 million tonnes of iron ore. FIMI also indicated potentially impose export tariff on 58% grade of iron ore.
– MySteel Rebar Inventory: Rebar production 3.596 million tonnes, down 0.32% w-o-w. Mills inventory 3.38 million tonnes, down 8.08% w-o-w. Circulation inventory 7.78 million tonnes, down 6.52% w-o-w.
Macro and Coals
– China Machinery Association statistic indicated 25 major producers sold 236,508 excavator products from this January to September, up 32% y-o-y. Domestic sales up 33.2% y-o-y, export up 22.2% y-o-y.
– China PPI September -2.1%, previous year -2.0%, est -1.8%. China CPI September 1.7%, last year 2.4%, est 1.8%.
– North Queensland port indicated Australia three major coal export ports exported 10.68 million tonnes in September, down 10.06% y-o-y, down 2.28% from August.
SGX Iron Ore 62% Futures& Options Open Interest(Oct 14th)
– Futures 71,344,500 tonnes(increase 651,600 tonnes)
– Options 92,854,300 tonnes(increase 830,000 tonnes)
Verdict
– Short-term bearish.