Verdict:
• Short-run Neutral.
Macro:
• US jobless claims down 17,000 to 233,000, refreshed biggest drop during the year, indicating a warm on job market.
• China’s CPI in July increased by 0.5% year-on-year, est. 0.3%, last 0.2%.
Iron Ore Key Indicators:
• Platts62 $99.30, -1.30, MTD $102.03. IOS traded around $99.5 before Platts index out yesterday, and rebounded over the night. However DCE was rather quiet, tested high and gave back most of gains. The physical market saw clear signal of rebound yesterday. NHGF traded only $0.1 lower than the trade on July 25th because of tight supply . MACF drop in line with index.
• China 45 ports iron ore inventories at 150.44 million tons, down 464,000 tons on the week, up 30.98 million tons on the year. Daily evacuations at 3.08 million tons, up 96,000 on the week, down 88,000 on the year.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 8th)
• Futures 114,899,800 tons(Increase 2,231,100 tons)
• Options 153,013,000 tons(Increase 4,537,500 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:
• Tangshan, China steel mills stared the third round of price cut by 50-55 yuan/ton effective from August 10th. The past two rounds total cut 100-110 yuan/ton.
