Market Verdict on Iron Ore：
· Iron ore short-run neutral to bullish, be aware of taking gains.
Macro
· U.S. non-agricultural employment reached 266,000, much lower than expectation at 978,000. U.S. index DXY dropped to the lowest since February 25th. Inflation-linked assets were bought massively cross weekends.
Iron Ore Key Indicators:
· Iron ore and raw materials price increased significantly as NDRC promote a goal achievement on carbon emission as well as capacity decrease before the 100 anniversary of communist party.
· DCE iron ore open interest lost 12.6% compared with mid-April, as long-run investment retreated from the market observed from some brokers’ seat.
SGX Iron Ore 62% Futures& Options Open Interest (May 7th)
· Futures 78,242,200 tonnes(Increase 1,522,300 tonnes)
· Options 61,392,200 tonnes(Increase 1,849,200 tonnes)
Steel Key Indicators
· Tangshan billet up 280 yuan/tonne cross weekends. Some mills HRC offer up 500 yuan/tonne.
· CISA: Iron ore high price was due to a price control in few producers. However the market speculation contributed to this big increase on price as well. CISA appealed government to guide the market to stop the continuous growth on iron ore.
· Both SHFE rebar and HRC major contracts reached limit-up during this Asian morning session.
Coal Key Indicators
· China Daqin Railroad maintenance complete during May. In addition, Mongolia coal export was recovering as a well control on the pandemic near broad areas. In addition, Russia export coals increased significantly during Q1 and Q2. The supply of coal expected to become loose during June and July. At the same time, eastern China and Southern China will enter rainy season in June and July, hydro-electric power expected to increase. 