Ferrous Market
– MySteel Rebar Inventory: Rebar production 3.61 million tonnes, down 3.55% w-o-w. Mills inventory 3.68 million tonnes, up 9.29% w-o-w. Circulation inventory 8.32 million tonnes, up 4.41% w-o-w.
– Ganggu Construction Steel Inventory: production 5.47 million tonnes, up 13,600 tonnes w-o-w. Mills inventory 5.09 million tonnes, up 605,700 tonnes w-o-w. Circulation inventory 11.03 million tonnes, up 43,080 tonnes w-o-w.
– TS billet up 70 yuan by during golden weeks since global commodity and equity market rebounded after hearing the speedy recovery of U.S. president Trump. The other reason contributing to the growth was Tangshan carried a new production restriction towards sintering machines, however encouraging pellets. SGX iron ore majorly ignored the production curb factor since some traders thought it would be a flexible restriction.
– Vale resumed production on Oct 1st on its miner in Viga mills, daily production on pelletizing ores 11,000 tonnes.
SGX Iron Ore 62% Futures& Options Open Interest(Oct 8th)
– Futures 70,251,600 tonnes(decrease 115,600 tonnes)
– Options 90,649,300 tonnes(unchanged)
Verdict
– Short-term neutral.