Market Verdict on Iron Ore：
· Iron ore neutral.
Macro
· U.S. federal maintained the interest rate between 0-0.25% unchanged, in line with market expectation. Powell announced that Federal will seek financial facilities to decrease inflation rate if inflation goes beyond 2%.
Iron Ore Key Indicators:
· Platts 62%: $190.45 (-3.40) MTD $178.70. Port market remain stable with a 10 yuan/tonne growth on Shandong ports, however some traders indicated that were just test market with tiny volume. Seaborne discount iron ore were traded with fixed price. PBF trades were significantly decreased during late April. The only PBF trade yesterday had a premium of $6, which was big decrease compared to $8-9 premium level in mid-April.
· Tangshan 10 sample steel mills pig iron before tax 3191 yuan/tonne, billet cost 4043 yuan/tonne, up 81 yuan/tonne w-o-w. Gross profit 937 yuan/tonne, down 41 yuan/tonne.
SGX Iron Ore 62% Futures& Options Open Interest (Apr 28th)
· Futures 91,611,600 tonnes(Increase 247,400 tonnes)
· Options 70,964,000 tonnes(Increase 775,000 tonnes)
Steel Key Indicators
· MySteel Rebar Inventory: Rebar production 3.6993 million tonnes, up 2.52% w-o-w. Mills inventory 3.52 million tonnes, down 7.42% w-o-w. Circulation inventory 9.0877 million tonnes, down 7.83% w-o-w.
Coal Key Indicators
· Shanxi coke market was strong, HBIS Group accepted the physical coke offer by 100 yuan/tonne. Physical coke so far has increased three rounds totaled 300 yuan/tonne.
