Iron Ore and Steel Market Updates
- Vale informs that, on this date, the Sub-Secretariat for Labour Inspection, in Minas Gerais, issued a Term of Suspension of Interdiction of the Itabira mining complex. The Itabira Complex activities were halted since June 5th, 2020 and the production impact was lower than 1 Mt. The operation will be gradually resumed and there is no need to revise the iron ore production guidance of 310-330 Mt in 2020.
- MySteel surveyed 64 mills import sintered iron ore total inventory at 17.20 million tonnes. Daily consumption at 623,700 tonnes. Import iron ore inventory turnover in 24 days.
- MySteel Rebar Inventory: Rebar production 3.96 million tonnes, down 0.59% w-o-w. Mills inventory 3.01 million tonnes, up 5.77% w-o-w. Circulation inventory 7.56 million tonnes, down 0.37% w-o-w.
China New Covid-19 cases and Coke Price
- Experts said Beijing potentially keep at level II alert for 2-4 weeks because of the new Covid-19 cases are increasing.
- PBOC cuts 14-day repo to 2.35% from 2.55%.
SGX Iron Ore 62% Futures& Options Open Interest(Jun 17th)
– Futures 70,875,500 tonnes(increase 202,900 tonnes)
– Options 113,901,600 tonnes(increase 1,170,000 tonnes)
Verdict
– Short-term neutral to bearish.