Iron Ore and Steel Market Updates
– Tangshan brought out new air pollution restriction in June, will potentially affect 35,000 tonnes of pig iron production, equal to 12% lower on blast furnace utilisation rate in Tangshan.
– Steelbank Inventory: rebar inventories 7.49 million tonnes, down 4.24% w-o-w. HRC 2.21 million tonnes, down 6.93% w-o-w.
– Tangsong: Vale indicated the their annual production target at 310 – 330 million tonnes unchanged and Itabira Mines are currently operating normally.
Macro
– China Caixin PMI 50.7, last 49.4, expectation forecast 49.6. Output rises to 54 from 51.1 in April. Highest reading since Jan 2011.
SGX Iron Ore 62% Futures& Options Open Interest(May 29th)
– Futures 63,128,800 tonnes(decrease 11,858,000 tonnes)
– Options 98,595,100 tonnes(decrease 16,883,500 tonnes)
Verdict
– Short-term consolidating at high level.