Ferrous Market Updates
– Both port trades and seaborne trades are traded lower yesterday. Some physical traders are reluctant to accept the high price. From the other side, Australia has boost volume during the last month of the fiscal year.
– MySteel Rebar Inventory: Rebar production 3.89 million tonnes, down 2.99% w-o-w. Mills inventory 3.41 million tonnes, down 0.58% w-o-w. Circulation inventory 8.17 million tonnes, up 2.48% w-o-w. The lowered production and also slowed inventory increase indicate weekly apparent consumption is better than expectation.
– Construction steels daily trading volume ramp up from 200,000 tonnes to 260,00 tonnes seeing this week. The speculation sentiments also drive physical and futures difference to a negative area(over 90% probability are positive), indicating the rebar futures potentially over stretched. As a result, rebar gave back gains to approach last night opening area.
SGX Iron Ore 62% Futures& Options Open Interest(Jul 8th)
– Futures 65,039,400 tonnes(increase 1,414,800 tonnes)
– Options 95,355,600 tonnes(increase 1,685,000 tonnes)
Verdict
– Short-term be aware of high level taking gains.