Verdict:
• Short-run Neutral.
Macro:
• US new house sales down 11.3% in May, refreshed six-month low because of the high mortgage rate. The new house supplies refreshed 16-year-high.
• From January to May, China industrial enterprises above designated size value added amount reached 2.75 trillion yuan, up 3.4% on the year.
Iron Ore Key Indicators:
• Platts62 $106.75, +3.00, MTD $106.55. Iron ore hiked yesterday following the news that China exploring ways to support local government in acquiring idle lands for house enterprises and policies to support troubled banks. However physical market were patience to wait for correction after the news priced-in.
SGX Iron Ore 62% Futures& Options Open Interest (Jun 26th)
• Futures 127,851,500 tons(Decrease 1,882,500 tons)
• Options 176,467,200 tons(Increase 268,500 tons)
Steel Key Indicators:
• Tangshan average billet cost 3339 yuan/ton, average loss at 39 yuan/ton.
Coal Indicators:
• China physical coke saw the first price increase by 50-55 yuan/ton yesterday, after two rounds of correction by 150-165 yuan/ton from late May.
