Verdict:
• Short-run Neutral.
Macro:
• China iron ore import in July up by 5% on the month at 102.81 million tons, because of miners increase shipments in June to finish year-end delivery target.
• Bank of Japan sent strong dovish signal after the huge financial market volatility spread over the world. The governor indicated to refrain from hiking interest rate when market are “unstable”.
Iron Ore Key Indicators:
• Platts62 $100.60, -1.70, MTD $102.57. The MACF was traded at $94.8 yesterday, down $3.4 from early this week. China steel mills maintenance resisted iron ore demand. However, steel mills protecting finished steel price support iron ore from fast drop.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 7th)
• Futures 112,668,700 tons(Increase 1,465,800 tons)
• Options 148,475,500 tons(Increase 7,529,000 tons)
Steel Key Indicators:
• Turkish deepsea import ferrous scrap price fell by $5.5/mt in Aug 7th at $381/mt, despite steady collection costs and stable Euro.
Coal Indicators:
• The FOB Australia coking coal price became stable in general this week. The market was under reselling pressure from European steel mills. Traders expect a correction if those resales failed to conclude in next few days.
