Market Verdict on Iron Ore：
· Iron ore short-run neutral.
Macro
· Ministry of Commerce: we will continue to ensure the supply and price of commodities, promote diversifying on import commodities, strengthen international cooperation, and build a mutual benefit and stable trade channel for commodities. At the same time, we should strengthen the cooperation between different government departments, and continue to increase efforts in ensuring transport capacity and strengthening the supervision on freight and road transportation cost.
· China Vice PM Liu He called U.S. Treasury Secretary Yellen, both were interested to keep communicate on cooperation in bilateral areas and macro economy.
· The White House has drawn up a plan for the United States to share 25 million doses of the remaining new vaccines with the world. The first batch of vaccines will be delivered as soon as Thursday, and said it will facilitate other countries to obtain vaccine production supplies made in the United States.
Iron Ore Key Indicators:
· Platts62 $211.20, +1.75, MTD $209.92. The market recover calm on China port areas. Shandong PBF maintained the same level at 1430 yuan/tonne. Seaborne mid-stream ores have no trade. Both seaborne and port buying interest significantly decrease compared to the first three days of this week.
· 247 sample steel mills pig iron production at 2.4459 million tones, up 12,800 tonnes w-o-w. Blast furnace utilization rate at 80.86%, utilization rate at 91.89%, both up slightly compared to last week.
· MySteel 45 ports iron ore inventories at 125.35 million tonnes, down 874,600 million tonnes w-o-w. Daily evacuation 2.94 million tonnes, up 43,700 tonnes w-o-w. Australia iron ore 65.20 million tonnes, down 105,000 tonnes w-o-w. Brazil iron ore 36.79 million tonnes, down 1.06 million tonnes w-o-w. 130 ships at ports, down 6.
SGX Iron Ore 62% Futures& Options Open Interest (Jun 3rd)
· Futures 76,290,900 tonnes(Increase 1,001,700 tonnes)
· Options 73,132,300 tonnes(Increase 3,930,000 tonnes)
Steel Key Indicators
· MySteel 64 sample mills sintered iron ore concentrates 16.19 million tones. Import iron ore turnover in 26 days. Pre-tax pig iron cost 3187 yuan/tonne.
· MySteel 18 separate EAFs construction cost 4766 yuan/tonne, up 216 yuan/tonne. EAFs average profit 332 yuan/tonne, down 98 yuan/tonne w-o-w. 