Market Verdict on Iron Ore：
· Iron ore neutral.
Macro
· China national Bureau of Statistics indicated Jan-Mar above scale industry enterprise realised 182.54 million yuan profit, up 1.37 times y-o-y, up 50.2% compared with same period in the year 2019.
· Several cities in eastern China started the fifth round of price increase on cements, totaled 100- 110 yuan/tonne.
Iron Ore Key Indicators:
· Platts62 $193.85, +2.40, MTD $178.04. Platts iron ore 62 Index created a historical high. Physical iron ore traded at 1305 yuan/tonne, up 10 yuan/tonne yesterday. Seaborne iron ore trades majorly on discount sources instead of PBF or Newman fines.
SGX Iron Ore 62% Futures& Options Open Interest (Apr 27th)
· Futures 91,364,200 tonnes(Increase 728,400 tonnes)
· Options 70,189,000 tonnes(Increase 2,034,200 tonnes)
Steel Key Indicators
· Ganggu Construction Steel Inventory: production 5.55 million tonnes, up 53,200 tonnes w-o-w. Mills inventory 5.27 million tonnes, down 782,600 tonnes w-o-w. Circulation inventory 12.12 million tonnes, down 1.14 million tonnes w-o-w.
Coal Key Indicators
· The significant increase on thermal coal price has increased electricity cost by 10%. Market were waiting for the production increase policy.