Market Verdict on Iron Ore：
· Iron ore short-run bearish.
Macro
· China top economic planning to rein in abnormal fluctuations in commodities price including iron ore, copper, and corn, which was part of broader five-year plan to overhaul various pricing mechanisms.
· On May 25, CNY against the US dollar mid-rate was 6.4283, up nearly 2% from 6.5584 on April 1st. The offshore RMB exchange rate against the US dollar hit a new high in the current three years.
Iron Ore Key Indicators:
· Platts62 $191.65, +3.40, MTD $208.26. Platts index were out earlier yesterday because it is a public Singapore holiday today, which also bring price higher in particular before holiday.
· MySteel Australia and Brazil iron ore total delivery at 26.4 million tonnes, up 3.82 million tonnes w-o-w. Australia iron ore delivery 18.41 million tonnes, down 1.63 million tonnes w-o-w. Australia delivery to China 15.85 million tonnes, up 1.597 tonnes w-o-w. Brazil iron ore delivery 7.997 million tonnes, up 2.19 million tonnes w-o-w. Global iron ore delivery 33.32 million tonnes, up 6.07 million tonnes w-o-w.
· MySteel 45 port previous week iron ore arrived 24.566 million tonnes, up 1.746 million tonnes w-o-w. Northern six ports arrivals at 11.32 million tonnes, up 130,000 tonnes w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (May 25th)
· Futures 87,853,400 tonnes(Increase 192,500 tonnes)
· Options 77,798,000 tonnes(Increase 1,145,000 tonnes)
Steel Key Indicators
· Tangshan Ecological Environment Bureau held a meeting to exit the list of “top 10 most polluted cities” including: 1. Strengthen governance of iron and steel enterprises. 2. Capacity replacement. Before autumn and winter, Tangshan Iron and steel enterprises shut down 12 blast furnaces, 8 converters and 29 sintering machines. 3. Total emission reduction. The total emission reduction of 22 iron and steel enterprises is no less than 30% per month. 4. Transformation and upgrading. Eliminate unqualified capacity, relocation, integration and reorganization, short process transformation, and accelerate the relocation projects of Jinma iron and Steel Co., Ltd., Huaxi iron and Steel Co., Ltd., and Tangshan Stainless Steel Co., Ltd.
· Ganggu Construction Steel Inventory: production 5.63 million tonnes, down 164,000 tonnes w-o-w. Mills inventory 4.66 million tonnes, up 499,200 tonnes w-o-w. Circulation inventory 9.44 million tonnes, down 561,000 tonnes w-o-w.
