Verdict:
• Short-run Neutral.
Macro:
• World Steel Association statistic indicated that the total pig iron production reached 318 million tons in Q1 among the 37 major countries, down 1.4% on the year. These 37 major countries accounted for 98.25% of capacities over the world.
• Russia announced to cancel tariffs on the thermal coal and anthracites, to support the local coal enterprises.
Iron Ore Key Indicators:
• Platts62 $118.15, -0.75, MTD $110.27. BHP sold MACF at $114.6/mt last Friday. After the disappearance of landing margin, the seaborne demand dampened.
SGX Iron Ore 62% Futures& Options Open Interest (Apr 26th)
• Futures 123,660,300 tons(Increase 965,200 tons)
• Options 156,842,800 tons(Increase 1,678,000 tons)
Steel Key Indicators:
• 40 EAFs average billet cost at 3819 yuan/ton, average loss at 83 yuan/ton.
Coal Indicators:
• China traders were evaluating the price hike of physical coke, given a marginal negative steel making profit. Thus, mills potentially resist on the further round of coke price hike in current weeks.
• An Indian end-user bought 40,000mt PMV at $249/mt yesterday.
