Market Verdict on Iron Ore：
· Iron ore short-run bullish.
Macro
· U.S. dollar index DXY maintained consolidation from 90 – 90.3.
· United Nations mid-year 2021 report indicated China growth expected to growth rate at 8.2%, higher than previous prediction at 7.2%. U.S. economy growth rate at 6.2%, higher than previous prediction as well.
Iron Ore Key Indicators:
· Platts62 $228.90, -0.65, MTD $206.09. PBF float premium at $6.65. Port PBF in Rizhao increased near 30% from the last day of April. During the period DCE and SGX major contract rebounded about 23%.
· DCE iron ore futures changed delivery benchmark from 62% to 61%. At the same time, increased deliverable resources to prevent market squeeze before major delivery months.
SGX Iron Ore 62% Futures& Options Open Interest (May 11th)
· Futures 79,519,200 tonnes(Increase 954,400 tonnes)
· Options 70,612,200 tonnes(Increase 6,530,000tonnes)
Steel Key Indicators
· Ganggu Construction Steel Inventory: production 5.65 million tonnes, up 17,300 tonnes w-o-w. Mills inventory 4.07 million tonnes, down 920,400 tonnes w-o-w. Circulation inventory 10.90 million tonnes, down 607,000 tonnes w-o-w.
Coal Key Indicators
· HIBS increased physical coke price by 100 yuan/tonne. Shandong major steel mills accepted physical coke by 100-120 yuan/tonne.
· Some cement plants started to restrict electricity usage, since big increase on coal price.
