Ferrous Market
– Ganggu Construction Steel Inventory: production 5.32 million tonnes, down 98,800 tonnes w-o-w. Mills inventory 4.34 million tonnes, down 215,800 tonnes w-o-w. Circulation inventory 10.07 million tonnes, down 552,800 tonnes w-o-w.
– MySteel Rebar Inventory: production 3.59 million tonnes, down 0.21% w-o-w. Mills inventory 3.28 million tonnes , down 3.06% w-o-w. Circulation inventory 7.30 million tonnes, down 6.07% w-o-w.
– The previous round of Tangshan production curb ended since air pollution level went down. Thus buying sentiment increased in Tangshan area to restock iron ore in late half of this week.
Macro
– China PM Liu He said China investment, export and consumption statistics are marginally enhanced, indicating the year 2020 economy growth rate potentially become positive.
– China central bank governor Yi Gang, said stable monetary policies may suit alternative targets. However will decrease leverage when GDP reached target and becomes higher.
SGX Iron Ore 62% Futures& Options Open Interest(Oct 21st)
– Futures 75,368,500 tonnes(increase 1,238,900 tonnes)
– Options 95,129,300 tonnes(increase 900,000 tonnes)
Verdict
– Short-term bearish.