Market Verdict on Iron Ore：
· Iron ore short-run neutral.
Macro
· The number of non-agricultural employment in the United States increased by 850,000 in June, which was larger than expected at 720,000. Last number 559,000. The U.S. unemployment rate in June was 5.9%, estimated at 5.6%, previous 5.8%.
Iron Ore Key Indicators:
· Platts62 $217.30, -1.50, MTD $218.05.
· Iron ore market recovered a stronger sentiment as some mills started to stock iron ores to increase utilisation rate after a month-long maintenance and production restriction.
SGX Iron Ore 62% Futures& Options Open Interest (Jul 2nd)
· Futures 74,202,600 tonnes(Increase 600,400 tonnes)
· Options 74,253,400 tonnes(Increase 673,500 tonnes)
Steel Key Indicators
· Construction steel inventory 7.1 million tonnes, up 3.03% w-o-w. HRC 2.44 million tonnes, up 1.49% w-o-w.
· 71 sample EAFs in China average utilisation rate at 21.74%, down 33.07% w-o-w.
· 247 blast furnace utilisation rate 57.94%, down 21.74% w-o-w, down 33.07% y-o-y.
· Most of mills recovered operation from early July, however started to execute the restriction from July 2nd- Dec 31st by 30%, excluding the mills completed the low emission target. Daily pig iron decrease at 100,600 tonnes estimated.
