Iron Ore and Steel Market Updates
– Iron ore port fixed-price trades are light during past two days.
– Australia Pilbara port may export 47.78 million tonnes, up 3.4% y-o-y, export to China 43.18 million tonnes, up 14.14%.
– Ganggu Construction Steel Inventory: production 2.11 million tonnes, up 2.45% w-o-w. Mills inventory 2 million tonnes, up 2.17% w-o-w. Circulation inventory 3.80 million tonnes, down 2.66% w-o-w.
Coking Coal and Macro
– MySteel surveyed Shanxi Province has closed 70 small miners, totaled a capacity of 29.25 million tonnes including 13.05 million tonnes of coking coal and 6.75 million tonnes of thermal coals.
– China may CPI up 2.4%, forecast 2.7%, last 3.3%. China PPI may down 3.7%, forecast 3.2%, last 3.1%.
SGX Iron Ore 62% Futures& Options Open Interest(Jun 9th)
– Futures 68,114,500 tonnes(increase 238,000 tonnes)
– Options 105,730,600 tonnes(increase 48,000 tonnes)
Verdict
– Short-term neutral to bearish.