Verdict:
• Short-run Neutral.
Macro:
• The Central Meteorological Observatory of China issued rainstorm warning that from 8:00 on June 24th to 8:00 on June 25th, there would be heavy to rainstorm in at least 8 provinces of China.
• US existing home sales fell a third month by 0.7% to 4.11 million, as prices set a record high in many areas.
Iron Ore Key Indicators:
• Platts62 $105.10, -1.60, MTD $107.01. Although there were resilient buyers to bottom hunt seaborne iron ore after a correction on futures, the upside room was limited. The market heard BHP widened Q3 term contract of Yandi fines from 1% in Q2 to 7.25%. In addition, the popularity concentrated in discount concentrates instead of premium iron ores, which would naturally lowered the value of index.
SGX Iron Ore 62% Futures& Options Open Interest (Jun 21st)
• Futures 126,968,200 tons(Increase 2,522,300 tons)
• Options 172,701,600 tons(Increase 2,625,000 tons)
Steel Key Indicators:
• European domestic HRC was EUR640-650 EXW, which was EUR 5 lower than last week. FOB Tianjin was $528, $5 lower on the week.
Coal Indicators:
• As we expected, offers of PMV in FOB Australia market finally made concession to buyers. The last trade on 40,000mt PMV was $239/mt, which was $16 lower than previous index, which was in $255-256.25 for two weeks.
