Market Verdict on Iron Ore：
· Iron ore short-run neutral.
Macro
· The U.S. Senate voted 69 to 30 to approve the $1 trillion cross-party base establishment bill, which includes $550 billion in new infrastructure funding project.
· China Ministry of Finance: building fiscal and tax policies to promote green and low-carbon development, will support the iron and steel and coal industries to resolve excess capacity, constantly eliminate unqualified production capacity with high energy consumption and release advanced production capacity. Experts suggest that the existing environmental protection tax, refined oil consumption tax and coal resource tax should be integrated to the form of the new carbon emission tax.
Iron Ore Key Indicators:
· Platts 62%: $162.20 (-9.00) MTD $175.69.
· Big four iron ore miners last week total delivered 20.93 million tonnes of iron ore, up 1.11 million tonnes w-o-w, down 81,000 tonnes y-o-y. Delivery to China 16.67 million tonnes, up 1.07 million tonnes w-o-w, down 1.54 million tonnes w-o-w. Total global delivery last week 628.35 million tonnes, up 6 million tonnes w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 10th)
· Futures 76,307,100 tonnes(Increase 516,800 tonnes)
· Options 69,548,100 tonnes(Increase 635,100 tonnes)
Steel Key Indicators
· Ganggu Construction Steel Inventory: production 5.09 million tonnes, down 48,300 tonnes w-o-w. Mills inventory 4.99 million tonnes, down 190,300 tonnes w-o-w. Circulation inventory 10.23 million tonnes, up 226,600 tonnes w-o-w.
· AISI reported that in the June of 2021, U.S. steel mills delivered 8.03 million tonnes of steel, up 33% y-o-y, up 0.6% m-o-m. The H1 2021 delivery 45.97 million tonnes, up 11.5% y-o-y.
