Market Verdict on Iron Ore：
· Iron ore short-run neutral to bearish.
Macro
· World Bank increased the China economy growth rate from 8.1% to 8.5%. China was the major economic entity after the pandemic recovery, where industry and consumption activities had recovered to pre-pandemic level. Moody expected China GDP in the year 2021 reached 8.4%. The year 2022 GDP reached 5.5%.
· China PMI 50.9%, last month 51%.
Iron Ore Key Indicators:
· Platts62 $214.1, -$5.95, MTD $214.37.
· MySteel Australia and Brazil iron ore total delivery at 27.72 million tonnes, up 3.54 million tonnes w-o-w. Australia iron ore delivery 19.81 million tonnes, up 1.52 million tonnes w-o-w. Australia delivery to China 15.6 million tonnes, up 805,000 tonnes w-o-w. Brazil iron ore delivery 7.91 million tonnes, up 2.02 million tonnes w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (Jun 29th)
· Futures 91,981,100 tonnes(Increase 1,613,000 tonnes)
· Options 86,317,300 tonnes(Increase 1,335,000 tonnes)
Steel Key Indicators
· Russia will impose a temporary export tariff of about 15% on aluminum and some ferrous metals on August 1. Among them, the premium of pellet is $54/ton. The premium of hot rolled plate and rebar is $115/ton. The premium of cold rolling and wire rod is $133/ton. The premium for stainless steel and ferroalloy is $150/ton.
· Ganggu Construction Steel Inventory: production 5.42 million tonnes, down 305,500 tonnes w-o-w. Mills inventory 6.17 million tonnes, up 151,200 tonnes w-o-w. Circulation inventory 9.95 million tonnes, up 346,100 tonnes w-o-w.