Verdict:
• Short-run Neutral to Bearish.
Macro:
• US April CPI up 3.4%, est. 3.4%, last 3.5%. PCE down 3.6% on the year, created biggest annual basis drop since April 2021.
Iron Ore Key Indicators:
• Platts62 $114.15, -0.90, MTD $116.78. The pellets were traded higher during this week in Asian market. However the outlook remain slight negative as the major steel makers in Asia were approaching a light season. In China, pellet usage increase would increase the overall input cost, which looked less possible when steel margin were negative in general.
SGX Iron Ore 62% Futures& Options Open Interest (May 15th)
• Futures 113,878,000 tons(Increase 289,100 tons)
• Options 139,358,700 tons(Increase 998,500 tons)
Steel Key Indicators:
• Tangshan average billet cost 3467 yuan/ton, up 23 yuan on the week.
Coal Indicators:
• MySteel estimated 110 coke washery plants average utilisation rate at 67.92%, up 3.81% on the week. Daily production at 577,300 tons, up 32,400 tons on the week.
