Daily Ferrous Physical Review Sep 10th

Ferrous Market
–    Ganggu Construction Steel Inventory: production 5.58 million tonnes, down 137,900 tonnes w-o-w. Mills inventory 4.88 million tonnes, down 126,400 tonnes w-o-w. Circulation inventory 11.47 million tonnes, up 37,200 tonnes w-o-w.
–    MySteel Rebar Inventory: Rebar production 3.72 million tonnes, down 2.82% w-o-w. Mills inventory 3.58 million tonnes, down 2.35% w-o-w. Circulation inventory 8.94 million tonnes, up 0.22% w-o-w.
–    Pilbara port authority suggested august Hedland iron ore delivery to China at 40.16 million tonne, up 5.3% m-o-m, up 5% y-o-y.

China Downstream
–    China Ministry of Finance statistic indicated august local debts reached 1.2 trillion yuan, created second high historically(the highest in may 2020, 1.3 trillion yuan).

SGX Iron Ore 62% Futures& Options Open Interest(Sep 9th)
–    Futures 79,534,600 tonnes(increase 1,799,000 tonnes)
–    Options 107,955,500 tonnes(increase 300,000 tonnes)

Verdict
–    Short-term bearish.

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