Market Verdict on Iron Ore：
· Iron ore short-run neutral.
Macro
· Biden’s budget raise annual spending to $6 trillion, with annual deficits of more than $1.3 trillion over the next decade.
Iron Ore Key Indicators:
· Platts62 $187.65, -4.00, MTD $207.05.PBF premium marked arround yearly high at $8.65, based on July index, which was much lower expected than May Index. Moreover, many May Index linked interests moved to June and July to avoid the high index settled in May.
· MySteel 45 ports iron ore inventories at 126.22 million tonnes, up 1.12 million tonnes w-o-w. Daily evacuation 2.91 million tonnes, down 12,800 tonnes w-o-w. Australia iron ore 65.31 million tonnes, up 677,800 tonnes w-o-w. Brazil iron ore 37.85 million tonnes, up 335,600 tonnes w-o-w. 136 ships at ports, up 7.
SGX Iron Ore 62% Futures& Options Open Interest (May 27th)
· Futures 88,572,100 tonnes(Increase 917,100 tonnes)
· Options 79,615,500 tonnes(Increase 892,500 tonnes)
Steel Key Indicators
· Mysteel researched 247 blast furnace operation rate at 80.99%, up 0.78% w-o-w. Utilisation rate 91.41%, up 0.23% w-o-w. Daily pig iron production 2.43 million tonnes, up 6,100 tonnes.
· India HRC started to correct as global HRC price corrected as well as Vietnam increased China import sources. China HRC price correct to $1030 to CFR Vietnam.
· 18 EAFs sample mills construction steel average cost 4550 yuan/tonne, down 340 yuan/tonne. EAF average profit 428 yuan/tonne, down 295 yuan/tonne. 