Market Verdict on Iron Ore：
· Iron ore neutral.
Macro
· IMF: global economic growth will reach 6% in 2021, which is a high forecast and the highest global growth rate in the past few decades.
· New Typhoon landed in southern China, which will impact four southern provinces with heavy rain for the coming three days.
· China air conditioner market will enter a light season as the August was the first autumn season with normally decrease on temperature in mid, north and west China. August Air conditioner sales 11.76 million sets, up 11% y-o-y.
Iron Ore Key Indicators:
· Platts62 $170.05, -13.10, MTD $180.19.
· MySteel 45 ports iron ore inventories at 126.39 million tonnes, down 1.74 million tonnes w-o-w. Daily evacuation 2.84 million tonnes, up 355,000 tonnes w-o-w. Australia iron ore 63.93 million tonnes, down 2.02 million tonnes w-o-w. Brazil iron ore 34.57 million tonnes, up 766,300 tonnes w-o-w. 192 ships at ports, up 24.
· The China People’s Daily sent article said the energy industry counted 80% of carbon emission market. However the related local government and enterprises shouldn’t overcut the high qualified capacity.
· CISA held a conference late last week said China will keep the target of 0 crude steel growth in the year 2021, however will protect the normal production on high quality and less pollution materials.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 5th)
· Futures 88,187,300 tonnes(Increase 709,400 tonnes)
· Options 85,599,400 tonnes(Increase 655,000 tonnes)
· Tangshan: 60 out of the 126 blast furnaces were overhauled (excluding long-term shutdown), with a total volume of 48544m ³. The weekly output was about 1017300 tons, with a capacity utilization rate of 64.04%, a decrease of 0.23% over last week, an increase of 14.83% over the same period last month and a decrease of 23.92% over the same period last year.
· Mysteel researched 247 blast furnace operation rate at 74.61%, up 0.26% w-o-w. Utilisation rate 85.73%, down 1.11% w-o-w. Daily pig iron production 2.28 million tonnes, down 29,500 tonnes.
