Market Verdict on Iron Ore：
• Neutral.

 

Macro
• Shanghai: the first batch of “white list” for the resumption of work and production has been announced. CATL, leading battery maker of China indicated that Shanghai factory had resumed 90% of work force. The production capacity has returned to the pre-epidemic level. The factory planed to continue to increase production.
• China State Administration of Market Supervision: Strengthen the price regulation of energy, resources and key areas, closely track the price trend of bulk commodities and raw materials such as energy, chemical fertilizer and non-ferrous metals, and cooperate with relevant departments to establish and improve the special mechanism for ensuring the supply and price stability of relevant raw materials.

 

Iron Ore Key Indicators:
• Platts62 $139.00, -6.80, MTD $142.57. Seaborne premium was heard higher after China Labour Day holidays, with restocking demand from mills. However weak steel margins also limited the size of deals. Physical traders indicated that market was interested in FMG SSF as well as some low grade Indian fines.
• Vale’s volumes jumped by 37.33% to 6.67 million tons from Brazilian ports accessed during the period from April 24 -30th. The previous four-week average shipments were at 5.01 million tons.
• BHP’s exports slumped by 30.22% week on week to 3.96 million tons from Port Hedland, impacted by continued COVID-19 and scheduled maintenance. The previous four- week average shipments were at 5.22 million tons over the previous.
SGX Iron Ore 62% Futures& Options Open Interest (May 9th)
• Futures 72,126,600 tons(Increase1,137,800 tons)
• Options 69,615,000 tons(Decrease 129,500 tons)

 

 

Steel Key Indicators
• CISA: member steel mills produced 2.36 million tons of crude steel on daily basis in late April, up 5.5% from mid-April. Produced 2.04 million tons of pig iron, up 4.35% from mid-April.
• Steelbank rebar circulation inventory 7.66 million tons, down 2.32% w-o-w. HRC inventories 3.04 million tons, down 0.17% w-o-w.

 

Coal Indicators
• China Shanxi coking coal road transportation recovered, market expect miners to decrease offers to control inventories levels in the following weeks.