Ferrous Market Updates
– MySteel 45 ports iron ore inventory at 107.81 million tonnes, up 1.64 million tonnes w-o-w. Daily evacuation 3.20 million tonnes up 93,800 tonnes w-o-w. Australia iron ore on ports at 61.34 million tonnes up 619,000 tonnes w-o-w. Brazil iron ore on ports at 21.73 million tonnes up 402,500 tonnes w-o-w.
– Tianjin morning iron ore market offered down 10 yuan, since market trade sell off sentiment on the back of restock before holiday.
– Steelbank inventories: construction steel inventory 6.99 million tonnes, up 2.71% w-o-w. HRC inventories 1.82 million tonnes, up 0.13% w-o-w.
– Tangshan extended the deadline of previous environment control from Jun 26 – Jul 1st(previously end at Jun 29th). Grade A and B steel mills followed a mandatary emission cut. Grade C steel mills are required to close sinter machines.
China Heavy Rain
– China metrology has raised heavy rain alert for 27 consecutive days, broke a historical record in June. Mid-China, East China and North China are all suffering heavy rain.
SGX Iron Ore 62% Futures& Options Open Interest(Jun 26th)
– Futures 73,023,000 tonnes(decrease 308,500 tonnes)
– Options 118,069,100 tonnes(increase 300,000 tonnes)
Verdict
– Short-term bearish.