Market Verdict on Iron Ore：
– Neutral.
Macro
– The day before chairman Powell’s important speech, hawkish officials of the Federal Reserve urged to start reducing the Treasury Bond purchase plan. They believe that the plan has become ineffective or even harmful.
Iron Ore Key Indicators:
– Platts62 $153.35, +3.90, MTD $159.72.
– MySteel 45 ports iron ore inventories at 129.21 million tonnes, up 1.25 million tonnes w-o-w. Daily evacuation 2.96 million tonnes, up 13,700 tonnes w-o-w. Australia iron ore 65.48 million tonnes, up 1.34 million tonnes w-o-w. Brazil iron ore 37.32 million tonnes, up 733,000 tonnes w-o-w. 165 ships at ports, up 3.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 26th)
– Futures 83,466,100 tonnes(Increase 888,400 tonnes)
– Options 86,478,100 tonnes(Increase 2,551,000 tonnes)
Steel Key Indicators
– CISA statistic indicated major steel companies daily produced 2.14 million tonnes of crude steels in mid-August, up 4.6% from early August. Steel companies inventories 14.93 million tonnes, up 312,200 tonnes from early August(3.12%).
– The biggest blast furnace of American Steel Company, Gary mill No 14 Furnace will start a maintainence from November 30th for the following 10 days.
Coal Indicators
– With the number of newly added cases in a single day of the recent epidemic in Mongolia approaching 2000, Mongolian citizens are worried about the rebound trend of the epidemic in Mongolia. In addition, Mongolia will face great risks in September this year – large group of unvaccinated students will begin to gather.
– China Zhengzhou Commodity Exchange increased margin of theromal coal (Oct20, Nov20, Dec20 and Jan21) to 30%, which was the highest margin level historically, effective after the settlement of Sep 3rd . In additon, non-future broker single contract daily new open will be limited to 200 lots effective from the night session of August 27th including Sep20, Oct20, Nov20, Dec20, Jan21, Feb21 and Mar21.
