Market Verdict on Iron Ore：
· Iron ore short-run bearish.
Macro
· China May electricity consumption maintained a high growth rate by 12.5% y-o-y, up 18.7% m-o-m. Jan-May total electricity consumption accumulated at 3.23 trillion KWH, up 17.7% y-o-y. However China major southern industry city Guangzhou electricity consumption reached 11.2 billion KWH, a historical high during the same period. Guangzhou electricity supply was tight.
Iron Ore Key Indicators:
· Platts62 $222.35, +0.05, MTD $213.31. Iron ore physical remain largely stable during the entire Tuesday, since most of the growth was reflected cross holiday as well as during the early morning. Port PBF traded at 1550 yuan/tonne. Seaborne iron ore premium was traded at historical high at July Platts index + $10.1/tonne. However currently traders were not interested to pay a fixed price and expected a big volatile market in coming months.
· MySteel Australia and Brazil iron ore total delivery at 26.14 million tonnes, up 1.11 million tonnes w-o-w. Australia iron ore delivery 18.499 million tonnes, up 1.62 million tonnes w-o-w. Australia delivery to China 15.51 million tonnes, up 1.596 million tonnes w-o-w. Brazil iron ore delivery 7.636 million tonnes, down 511,000 tonnes w-o-w. Global iron ore delivery 29.6 million tonnes, down 1.69 million tonnes w-o-w.
· MySteel 45 port previous week iron ore arrived 22.12 million tonnes, up 1.61 million tonnes w-o-w. Northern six ports arrivals at 11.43 million tonnes, up 1.874 million tonnes w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (Jun 15th)
· Futures 82,356,500 tonnes(Increase 275,200 tonnes)
· Options 81,259,800 tonnes(Increase 430,000 tonnes)
Steel Key Indicators
· China AnSteel decreased rebar and HRC price by 200 yuan in July based on the price in June.
· Ganggu Construction Steel Inventory: production 5.74 million tonnes, up 73,700 tonnes w-o-w. Mills inventory 5.41 million tonnes, up 414,400 tonnes w-o-w. Circulation inventory 9.3 million tonnes, up 111,500 tonnes w-o-w.
