Iron Ore and Steel Market Updates
- MySteel sintered iron ore inventory at 16.62 million tonnes. Sintered iron ore daily consumption 625,100 tonnes. Inventory turnover in 23 days.
- China weather forecast indicated heavy rain and flood warning in western, mid-China and southern provinces. Guangzhou inventories decrease slower w-o-w, since several floods happen in late May and June, thus many construction sites are closed.
- MySteel Rebar Inventory: Rebar production 3.99 million tonnes, up 0.8% w-o-w. Mills inventory 2.84 million tonnes, up 0.06% w-o-w. Circulation inventory 7.58 million tonnes, down 1.96% w-o-w.
Coking Coal
- Biggest south Africa port RBCT export 6 million tonnes of coals, down 1.2 million tonnes y-o-y, up 2.3 million tonnes m-o-m, the highest of the year. The major decrease was due to export to India down 60.1% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest(Jun 10th)
– Futures 68,746,000 tonnes(increase 631,500 tonnes)
– Options 107,460,600 tonnes(increase 1,730,000 tonnes)
Verdict
– Short-term neutral to bearish.