Market Verdict on Iron Ore：
· Iron ore short-run neutral.
Macro
· U.S. Federal Powell said the U.S. inflation exceeded the previous expectation, however Federal doesn’t have a plan to increase interest rate immediately.
· China State Material Reserve Regulation Center issued an announcement on the release of the first batch of national reserves of copper, aluminum and zinc in 2021, and decided to launch the first batch of national reserves of copper, aluminum and zinc in 2021 in the near future, which are 20000 tons, 50000 tons and 30000 tons respectively, and open bidding will be conducted from July 5 to 6th.
Iron Ore Key Indicators:
· Platts62 $212.70, +6.15, MTD $213.59
· MySteel Australia and Brazil iron ore total delivery at 24.18 million tonnes, down 1.95 million tonnes w-o-w. Australia iron ore delivery 18.29 million tonnes, down 211,000 tonnes w-o-w. Australia delivery to China 14.798 million tonnes, down 708,000 tonnes w-o-w. Brazil iron ore delivery 5.89 million tonnes, down 1.74 million tonnes w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (Jun 22nd)
· Futures 85,888,200 tonnes(Increase 805,300 tonnes)
· Options 83,522,300 tonnes(Decrease 340,000 tonnes)
Steel Key Indicators
· CISA indicated current steel price at high price, which was less potentially to keep increase during a balanced supply and demand market. However steel price expected to correct when the marginal demand decreases.
· Ganggu Construction Steel Inventory: production 5.73 million tonnes, down 11,700 tonnes w-o-w. Mills inventory 6.02 million tonnes, up 612,300 tonnes w-o-w. Circulation inventory 9.61 million tonnes, up 306,200 tonnes w-o-w.