Verdict:
• Short-run Neutral.
Macro:
• S&P indicated that the U.S. Service PMI in August at 51.0, refreshed the slowest increase since February. Manufacturing PMI in August at 47.0, down from 49.0 in July, created a four consecutive month drop.
Iron Ore Key Indicators:
• Platts62 $116.50, +3.20, MTD $107.06. BHP narrowed JMBF discount from $4.5 to $4 in September. MACF maintained unchanged discount at 0.25%. The current narrowed steel margin supported the demand on discount concentrates.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 23rd)
• Futures 123,610,600 tons(Increase 3,405,400 tons)
• Options 111,848,400 tons(Increase 2,205,000 tons)
Steel Key Indicators:
• Tangshan average billet cost 3598 yuan/ton, up 32 yuan/ton on the week, average loss at 48 yuan/ton.
• World Steel Association statistic indicated that total 63 member countries crude steel production at 158.5 million tons, up 6.6% on the year.
Coal Indicators:
• There was a 35,000mt Riverside PMV Australia FOB cargoes sold to India end-users at $259.
