Verdict:
• Short-run Neutral.
Macro:
• China customs: China toal import and export value of goods reached 21.17 trillion yuan, increased by 6.1% on the year and refreshed the highest single month record.
• US June PPI annual rate increased by 2.6%, est. 2.3%, last 2.2%. PPI monthly rate in June increased by 0.2%, est. 0.1%, last 0.2%.
Iron Ore Key Indicators:
• Platts62 $108.00, -0.15, MTD $109.85. The port inventories of iron ore in China maintained seasonal and year-high for the past eight weeks, with a slight drop on pig iron consumption. The downstream market of China entered light season from June to August because of heavy rain and extreme hot weather. In addition, the market was waiting for news from China plenary next week.
SGX Iron Ore 62% Futures& Options Open Interest (Jul 12th)
• Futures 108,050,300 tons(Increase 1,223,000 tons)
• Options 154,355,100 tons(Increase 952,000 tons)
Steel Key Indicators:
• MySteel blast furnace utilisation rate at 88.70%, down 0.38% on the week. EAFs utilisation rate at 44.74%, down 4.29% on the week.
• Global blast furnace total produced 106.59 million tons of pig iron , down 2.3% on the month, down 2.2% on the year.
Coal Indicators:
• The FOB Australia coking coal miners cut offers down as lack of enquiries and wide spread between buyers and sellers.
