Verdict:
• Short-run Neutral.
Macro:
• Last week, the number of initial jobless claims in the US was 232,000, est. 230,000, last revised from 227,000 to 228,000.
• World Steel Association: In July 2024, the crude steel production of 71 countries included in the World Steel Association’s statistics was 152.8 million tons, a year-on-year decrease of 4.7%.
Iron Ore Key Indicators:
• Platts62 $97.00, -0.90, MTD $98.24. Seaborne iron ore market became quiet yesterday as the fast drop on commodities and iron ore derivatives. There was MBF from Roy Hill with Fe58% traded at $83.8/mt. The low grade became active in August as the negative steel margin.
• China 45 ports iron ore inventories at 150.33 million tons, down 26,000 tons on the week, up 30 million tons on the year. Daily evacuations at 3.03 million tons, down 192,000 on the week, down 256,000 on the year.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 22nd)
• Futures 139,589,200 tons(Increase 2,484,100 tons)
• Options 163,450,100 tons(Increase 1,805,500 tons)
Steel Key Indicators:
• China steel mills iron ore blast utilisation rate at 84.3%, down 1.62% on the week, down 7.47% on the year.
Coal Indicators:
• The current glut on coking coal market as well as decreasing pig iron production in China both resisted FOB coking coal market.
