Ferrous Market
– MySteel 45 ports iron ore inventories at 124.12 million tonnes, up 1.45 million tonnes w-o-w. Daily evacuation 2.97 million tonnes, down 57,600 tonnes w-o-w. Australia iron ore 58.69 million tonnes, up 95,000 tonnes w-o-w. Brazil iron ore 41.94 million tonnes, up 1.50 million tonnes w-o-w. 172 ships at ports, up 13.
– Mysteel researched 247 blast furnace operation rate at 84.24%, up 1.04% w-o-w. Utilisation rate 91.24%, down 0.53% w-o-w. Daily pig iron production 2.43 million tonnes, down 14,100 tonnes.
– China imported 1.17 billion tonnes of iron ore in the year 2020, up 9.5% y-o-y. The import value of iron ore was 822.87 billion yuan, up 17.4%. Both created historical high.
– Most Tangshan billets were stockpiled because rolling mills were suspended because of environment protection and high cost.
– Brazil high silicon iron ore discount is expanded since more penalties on high silicon. However the high grade with low aluminum and silicon Brazil iron ores are currently experience a shortage on China ports.
– A fire at a shiploader early on Jan. 14 at Vale’s main iron ore export terminal at Ponta da Madeira in northeast Brazil – from where it ships high-grade Carajas ore – was brought under control by the fire services and the terminal remains operational, Vale said. A shipowner with a vessel loading at PDM told S&P Global Platts that the fire had been at PDM’s 4S shiploader – in the main VLOC (Very Large Ore Carrier) berth – at about 0200h local time.
– Tangshan traders indicated most of steel rolling mills were suspended concerning high cost and harsh environment protection policy.
Macro
– Biden seeks $1.9 trillion for relief in first economic plan.
– Powell bats down bond-taper talk, warning against an early exit.
SGX Iron Ore 62% Futures& Options Open Interest(Jan 14th)
– Futures 72,774,900 tonnes(increase 1,512,900 tonnes)
– Options 43,699,200tonnes(increase 1,050,000tonnes)
Verdict
– Short-term neutral