Market Verdict on Iron Ore：
• Neutral.

 

Macro
• U.S. Energy Bureau indicated that U.S. would release up to 4,010 barrels of crude oil.
• Reuters indicated that Tesla factory in Shanghai would recover the production to pre-pandemic level in a few days.

 

Iron Ore Key Indicators:
• Platts62 $130.50, -5.45, MTD $133.17. Seaborne PBF obtained growing interests, in particular after price correction. However buyers are still preferring MACF. China MACF at port areas decreased fast. South Flank mines expected to ship more MACF to China. 65-62 spread remained narrow around $23 because of the thin steel margin. Some traders indicated that mills resold Carajas fine considering the cost. SSF discount narrowed for consecutive months while SSF/PBF ratio also narrowed, indicating the low grade fines are favorable options for end-users to optimise cost-efficiency.
• Nation Bureau of Statistics indicated January -April iron ore production 330.79 million tons, down 0.9% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest (May 24th)
• Futures 81,098,300 tons(Increase1,295,200 tons)
• Options 76,857,500 tons(Increase 754,500 tons)

 

 

Steel Key Indicators
• China scrap consumption fell 2.8% in 2021 at 226.21 million tons, remained the world’s largest steel scrap user, according to Bureau of International Recycling. World trade in ferrous scrap rose 9.7% in 2021 to 109.6 million mt as the decarbonising target set for manufactures and steelmakers.
• Global crude steel production totaled 162.7 million mt in April, down 5.1% from 2021. China produced 92.8 million in April, down 5.2% y-o-y. India produced 10.1 million mt, up 6.2% y-o-y. Crude steel production in Europe totaled 16.5 million mt in April, down 3.7% y-o-y.

 

Coal Indicators
• FOB Australia market down $1.5 at $518.5 because of more offers crowded in the market, one competitive offers at $505/mt for 75,000mt HCCA Brand decreased $35 from $540 during the same day.
• China coke market saw the fourth round of decrease in Shanxi at 200 yuan/mt. The four rounds decrease totaled 800 yuan/mt.