Ferrous Market
– MySteel Rebar Inventory: Rebar production 3.73 million tonnes, up 0.29% w-o-w. Mills inventory 3.55 million tonnes, down 0.8% w-o-w. Circulation inventory 8.81 million tonnes, down 1.4% w-o-w.
– Ganggu Construction Steel Inventory: production 5.58 million tonnes, down 3,300 tonnes w-o-w. Mills inventory 4.82 million tonnes, down 54,200 w-o-w. Circulation inventory 11.32 million tonnes, down 151,300 tonnes w-o-w.
– Construction daily trade volume is lower than 190,000 tonnes per day on Tuesday and Wednesday, which created the lowest daily volume in September.
China Downstream
– OECD forecasted global economy growth at -4.5% the year 2020, better than previous estimation at – 6.5%. The report also estimate U.S. economy growth rate a – 3.8%. Eurozone growth rate at -8%. U.K. growth rate at -10.1%. Japan growth rate at -5.8%.
– 24 cities of China carried out new housing strategies to regulate the property speculation, indciating house prices potentially see roof or slow down the growth during September or October.
SGX Iron Ore 62% Futures& Options Open Interest(Sep 16th)
– Futures 84,584,100 tonnes(increase 558,300 tonnes)
– Options 113,545,500 tonnes(increase 1,470,000 tonnes)
Verdict
– Short-term bearish.