Iron Ore and Steel Market Updates
– Australia Anti-Dumping Commission start to investigate on imported colored steel belt from China and Vietnam. The investigation period from April 1st,2019 – March 31st, 2020.
– MySteel Rebar Inventory: Rebar production 3.94 million tonnes, up 0.63% w-o-w. Mills inventory 3.05 million tonnes, up 1.38% w-o-w. Circulation inventory 8.03 million tonnes, down 4.05% w-o-w.
Macro
– PBOC(China central bank) offers 240 billion yuan 7-day reverse repo at 2.2% to offset impact from government bond sales and corporate tax payments. PBOC also sells 120 billion yuan Reverse Repo yesterday at same interest rate. Previously PBOC has stopped reverse repo for 50 days.
SGX Iron Ore 62% Futures& Options Open Interest(May 27th)
– Futures 72,744,400 tonnes(increase 1,026,600 tonnes)
– Options 114,581,100 tonnes(increase 1,325,000 tonnes)
Verdict
– Short-term consolidating at high level.