Market Verdict on Iron Ore：
· Iron ore short-run neutral.
Macro
· China Caixin July PMI 54.9, est. 50.5, last 50.3.
· China Automobile Association: China July Automobile sales 1.82 million, down 9.7% m-o-m, down 13.8% y-o-y.
· Since the end of July, China weather has gradually improved, the local market demand has recovered rapidly, the manufacturer’s shipment has continued to rise, and the cement price has been strongly supported by the stricter power restriction in some regions. East China took the lead to increase price, of which Jiangxi increased by up to 60 yuan / ton. In addition, cement enterprises in central and southern regions such as Hunan and Guangxi also successively issued price increase notices, with an increase of 20-50 yuan / ton.
Iron Ore Key Indicators:
· Platts62 $184.15, +0.75, MTD $183.78
· MySteel 45 ports iron ore arrivals at 22.17 million tonnes, up 5.94 million tonnes w-o-w. Six northern ports arrivals at 11.46 million tonnes, up 1.72 million tonnes w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 3rd)
· Futures 71,509,100 tonnes(Increase 405,200 tonnes)
· Options 68,433,600 tonnes(Increase 305,000tonnes)
Steel Key Indicators
· CISA: China steel usage in general was over-estimated. The H2 steel consumption expected to weaken.
· Ganggu Construction Steel Inventory: production 5.59 million tonnes, up 415,700 tonnes w-o-w. Mills inventory 5.46 million tonnes, down 634,500 tonnes w-o-w. Circulation inventory 10.62 million tonnes, up 167,200 tonnes w-o-w.
