Market Verdict on Iron Ore：
· Iron ore short-run neutral.
Macro
· China State Council conference mentioned to inspect the illegal speculation on commodities and tax evasion, which disturbed the market environment and the tax revenue.
· U.S. June PPI reached 7.3%, core PPI reached 5.6%, both created record high. U.S. Federal Powell indicated Federal potentially adopt measures if inflation maintained on or above 2%, which including interest rate raise.
Iron Ore Key Indicators:
· Platts62 $217.85, unch, MTD $219.12.
SGX Iron Ore 62% Futures& Options Open Interest (Jul 14th)
· Futures 80,891,600 tonnes(Increase 1,564,600 tonnes)
· Options 80,387,900 tonnes(Increase 430,000tonnes)
Steel Key Indicators
· Environment inspection team started to re-check some steel mills capacity in Jiangsu Province.
· MySteel Rebar Inventory: Rebar production 3.55 million tonnes, up 2.96% w-o-w. Mills inventory 3.25 million tonnes, down 5.27% w-o-w. Circulation inventory 8.27 milliontonnes, up 1.75% w-o-w.
· Tangshan 10 sample steel mills pig iron before tax 3731 yuan/tonne, billet cost 4689 yuan/tonne, up 20 yuan/tonne w-o-w. Gross profit 431 yuan/tonne, up 140 yuan/tonne.
