Ferrous Market
– Construction steel consumption is less than expectation in traditional building season in September. Trading volume is weaker compared to August. In addition, construction steel inventories are at historical high level.
– Mysteel Australia and Brazil iron ore delivery at 26.34 million tonnes, up 2.59 million tonnes. Australia iron ore delivery 18.17 million tonnes, up 1.85 million tonnes w-o-w. Australia delivery to China 15.17 million tonnes, up 1.604n million tonnes w-o-w. Brazil iron ore delivery 8.17 million tonnes, up 739,000 tonnes w-o-w.
– CISA: major steel mills produced 2.14 million crude steels per day in early September, down 1.09% from late August. Daily pig iron 1.896 million tonnes, down 1.55 from late August.
– Mysteel surveyed Australia port maintenance impact 1.53 million tonnes of iron ore delivery. Brazil port maintenance impact 988,000 tonnes of iron ore delivery.
China Housing
– China listed housing companies indicated liquidity tight, and will reach revenue target by lower house prices.
SGX Iron Ore 62% Futures& Options Open Interest(Sep 15th)
– Futures 84,025,800 tonnes(increase 761,200 tonnes)
– Options 112,075,500 tonnes(increase 2,705,000 tonnes)
Verdict
– Short-term bearish.