Market Verdict on Iron Ore：
· Iron ore short-run neutral.
Macro
· From January to July, China issued 3997.9 billion yuan of local government bonds, a year-on-year increase of 6.37%. In July, the country issued 656.8 billion yuan of local government bonds. About 50% of the new special bonds issued by local governments from January to July were invested in major projects in the fields of transportation infrastructure, municipal administration and industrial complex.
Iron Ore Key Indicators:
· Platts62 $148.60, +12.10, MTD $160.76.
· Brazi energy company Cosan proposed to merge with Aura Minerals to transport and explore iron ores. The company will be led by previous management member from Vale and CSN.
· MySteel Australia and Brazil iron ore total delivery at 26.19 million tonnes, up 3.43 million tonnes w-o-w. Australia iron ore delivery 17.58 million tonnes, up 2.53 million tonnes w-o-w. Australia delivery to China 13.68 million tonnes, up 678,000 tonnes w-o-w. Brazil iron ore delivery 8.61 million tonnes, up 893,000 tonnes w-o-w. Global iron ore delivery 33.04 million tonnes, up 4.46 million tonnes w-o-w.
· China Iron ore 45 port arrivals at 23.43 million tonnes, down 2.04 million tonnes w-o-w. Northern six port arrivals at 14.22 million tonnes, up 2.72 million tonnes w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 24th)
· Futures 82,148,000 tonnes(Increase 282,300 tonnes)
· Options 83,344,600 tonnes(Increase 2,260,600 tonnes)
Steel Key Indicators
· The Guidance on promoting the high-quality development of the iron and steel industry expected to be issued and implemented recently after few demonstrations and revision for current 8 months. The guiding opinions put forward that by 2025, the industrial concentration of the top 5 iron and steel enterprises will reach 40% and the industrial concentration of the top 10 iron and steel enterprises will reach 60%.
