Market Verdict on Iron Ore：
· Neutral to bearish.
Macro
· The United States recorded an annual rate of 5.3% without quarterly adjustment of CPI in August, in line with expectations. In August, the monthly rate of core CPI recorded 0.1%, the lowest since February this year. Analysts believed that this indicated inflation has peaked, buying more time for the fed before raising interest rates.
· In August, China’s economy continued to recover steadily, and the power consumption continued to grow, reaching 760.7 billion KWH, a year-on-year increase of 3.6% and an average increase of 6.0% in the two years.
Iron Ore Key Indicators:
· Platts62 $120.35, -2.25, MTD $133.29.
· Australia and Brazil seven major iron ore port inventories 12.68 million tones, up 57,000 tonnes w-o-w. Total inventories were at high levels over the year.
· Australia and Brazil total delivery of 19 ports 25.795 million tones, up 140,000 tonnes w-o-w. Australia total delivery 18.48 million tones, up 512,000 tonnes w-o-w. Brazil total delivery 7.31 million tones, down 372,000 tonnes w-o-w. Global iron ore delivery 31.79 million tones, down 588,000 tonnes w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (Sep 14th)
· Futures 74,467,200 tonnes(Increase 593,600 tonnes)
· Options 86,508,000 tonnes(Increase 1,458,000 tonnes)
Steel Key Indicators
· China steel August export decrease significantly, however in short-run it is not possibly to incur export tax. China expected Q4 average export 5 million tones of steel in each month.
· China August crude steel production 83.24 million tones, down 13.2% y-o-y. Jan-Aug production 733 million tones, up 5.3% y-o-y.