Market Verdict on Iron Ore：
· Iron ore short-run neutral.
Macro
· The National Development and Reform Commission held a regular press on June 17 to carry out the supervision of the bulk commodity market, jointly investigate the market transactions, interview enterprises and associations in key industries, investigate and verify the clues related to suspected market manipulation, and urge the relevant market entities to operate in accordance with the law. Recently, it has also established a regular consultation mechanism with the State Administration of market supervision and the China Securities Regulatory Commission for the linkage supervision of the futures and spot markets. Before the end of the fourteenth five year plan, there will be some domestic demand increase for crude steel. Encourage iron and steel enterprises to implement green production, and improve the quality of iron and steel industry. Promote the development of EAF steel process, improve the overall energy saving and environmental protection level of the industry. Encourage the construction and expansion of domestic iron ore projects to enhance the effective supply capacity. Guide iron and steel enterprises to further strengthen the cooperation of upstream and downstream industrial chain, and create a good market environment.
Iron Ore Key Indicators:
· Platts62 $220.80, +7.15, MTD $213.92.
· MySteel 45 ports iron ore inventories at 120.89 million tonnes, down 2.78 million tonnes w-o-w. Daily evacuation 3 million tonnes, up 22,400 tonnes w-o-w. Australia iron ore 62.12 million tonnes, down 1.07 million tonnes w-o-w. Brazil iron ore 34.84 million tonnes, down 1.96 million tonnes w-o-w. 145 ships at ports, up 3.
· Mysteel researched 247 blast furnace operation rate at 80.21%, down 0.13% w-o-w. Utilisation rate 91.67%, down 9.09% w-o-w. Daily pig iron production 2.44 million tonnes, down 500 tonnes w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (Jun 17th)
· Futures 84,306,200 tonnes(Increase 975,300 tonnes)
· Options 82,784,800 tonnes(Increase 820,000 tonnes)
Steel Key Indicators
· CISA statistic indicated early June major steel enterprises produced 2.34 million tonnes of steel, up 2.15% m-o-m, up 13.33% y-o-y. Steel inventory 14.23 million tonnes, up 6.14% y-o-y.
