Ferrous Market
– MySteel Australia and Brazil iron ore total delivery(Oct 19 – 25th) at 24.58 million tonnes, down 339,000 tonnes. Australia iron ore delivery 17.21 million tonnes, down 3.05 million tonnes w-o-w. Australia delivery to China 13.81 million tonnes, down 2.54 million tonnes w-o-w. Brazil iron ore delivery 7.36 million tonnes, down 337,000 tonnes w-o-w. Global iron ore delivery 31.94 million tonnes, down 1.899 million tonnes w-o-w.
– China National Statistic Bureau: Jan – Sep metallurgical ferrous companies realised revenue 5.15 trillion yuan, up 1.2% y-o-y. Cost 4.78 trillion yuan, up 1.9% y-o-y. Profit 157.7 billion yuan, down 18.7% y-o-y, up 4.4% from Jan to Aug.
– Part of Australia ports maintanence has an impact of 1.5 million tonnes of iron ore estimated by Mysteel.
Macro
– Germany new infected Covid-19 cases up 70% w-o-w. France is planning to lock the country because fail to control the spread out of pandemic.
SGX Iron Ore 62% Futures& Options Open Interest(Oct 27th)
– Futures 77,070,200 tonnes(increase 641,200 tonnes)
– Options 98,699,300 tonnes(increase 1,230,000 tonnes)
Verdict
– Short-term neutral.