Iron Ore and Steel Market Updates
– Japan JFE steel will settle the subsidiary Nippon EGalv Steel in Malaysia after a financial loss. The mill will stop operation in this June.
– Baffinland Iron Mines will keep operating at 6 million tonnes mtpa before the end of 2021. Indian Sponge Iron Manufacturers Association appealed to increase pellets export tax. South Africa decrease the lockdown level.
– Ganggu Construction Steel Inventory: production 2.02 million tonnes, up 1.95% w-o-w. Mills inventory 2.04 million tonnes, down 4.51% w-o-w. Circulation inventory 4.15 million tonnes, down 5.25% w-o-w.
Macro Market and Coking Coal
– China Ministry of Transport indicated Jan- Apr fixed investment in transportation reached 679 billion yuan, down 8.6% y-o-y. April investment on transportation 299.9 billion yuan, up 18.2% y-o-y.
– Shandong Province is drafting on decisions to increase coke production cut.
SGX Iron Ore 62% Futures& Options Open Interest(May 26th)
– Futures 71,717,800 tonnes(increase 175,000 tonnes)
– Options 113,256,100 tonnes(increase 880,000 tonnes)
Verdict
– Short-term consolidating at high level.