Ferrous Market
– MySteel 45 ports iron ore inventory at 114.56 million tonnes, up 824,600 tonnes w-o-w. Daily evacuation 3.14 million tonnes down 117,200 tonnes w-o-w. Australia iron ore on ports at 57.79 million tonnes down 1.13 million tonnes w-o-w. Brazil iron ore on ports at 30.31 million tonnes up 280,300 tonnes w-o-w. 165 ships at ports down 4 ships w-o-w.
– MySteel 247 sample mills blast furnace utilisation rate at 90.89%, down 0.52% w-o-w, up 3.65% y-o-y. Daily pig iron production 2.51 million tonnes, down 5,500 tonnes, up 139,500 tonnes w-o-w.
– Anglo-American miner Minas-Rio was required by Brazil local government to suspend production by 30 days because of failure to control the pandemic spread. The miner ships 1.6 million tonnes of pellitizing ores to China, however no direct impact on iron ore concentrates since pellets have sufficient inventories on China port, as well as limited furnace input. Minas-Rio announced there is no impact on its annual production target 22-24 million tonnes.
Coal Market
– Indian potentially restart 12 previous closed underground coal mines to increase coal production, totaled capacity of 1.06 billion tonnes.
SGX Iron Ore 62% Futures& Options Open Interest(Sep 10th)
– Futures 81,262,100 tonnes(increase 1,727,500 tonnes)
– Options 108,470,500 tonnes(increase 515,000 tonnes)
Verdict
– Short-term bearish.