Verdict:
• Short-run Neutral.
Macro:
• US non-agricultural payroll grew 206,000, estimated 190,000, last 272,000. The unexpected unemployment rate reached 4.1%, refreshed new high from June 2021.
• The new-built commercial houses trades in area created new high in 2024 for Beijing, Shanghai, Guangzhou and Shenzhen in June, grew by 21%, 66%, 48% and 38% respectively.
Iron Ore Key Indicators:
• Platts62 $110.50, -3.50, MTD $111.72. Iron ore market weakened last Friday because of the general drop of China equities as well as the commodities. The physical buyers were waiting for further correction.
SGX Iron Ore 62% Futures& Options Open Interest (Jul 5th)
• Futures 105,384,800 tons(Decrease 108,100 tons)
• Options 151,364,600 tons(Increase 265,000 tons)
Steel Key Indicators:
• The Turkish scrap market saw divergence between buyers and sellers. Sellers hold up offers because of high freight cost and low efficiency on port operation. However the demand market was sluggish in July. The HMS 1/2 80:20 from US was sold at $390/t. The EU origin tradeable value was at $388/t.
Coal Indicators:
• Anglo American declared force majeure on fourth quarter coking coal deliveries following the fire accident in Grosvenor mine previously. There is yet any change on H2 2024 target production for the miner.
