Verdict:
• Short-run Neutral to Bullish.
Macro:
• China January to July industrial profit above designated scale reached 4.099 trillion yuan, up 3.6% on the year. Steel industry loss at 2.76 billion yuan.
• Brazil miner Samarco estimated to increase iron ore capacity by 60% by the end of 2024, among which pellet capacity reached 15 million tons.
Iron Ore Key Indicators:
• Platts62 $101.10, +1.00, MTD $98.38. The derivatives market were trading interest cut and restocking in China. The physical trades increased significantly during this week. Thus, iron ore gained strong support at the current level. The market potentially maintain neutral to bullish before the landing of interest cut as well as eyeing the true demand of September.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 27th)
• Futures 144,899,000 tons(Increase 1,131,700 tons)
• Options 167,625,100 tons(Increase724,000 tons)
Steel Key Indicators:
• The Turkish scrap market saw reversal signals as repeatable values traded around $360- 365/mt area. The mills were waiting for some depreciation on currencies, which increased their purchase cost during August.
Coking Coal and Coke Indicators:
• After the resistance of price decrease by Australian miners, the FOB coking coal price stablised. There was an HCCA trade at $195 yesterday.
• The physical coke in China saw first increase by 100-110 yuan/ton, after six rounds of drop by 300-330 yuan/ton.
