Market Verdict on Iron Ore：
· Iron ore short-run neutral to bearish.
Macro
· U.S. July Markit service PMI 59.9, est. 59.8, last 59.8. Composite PMI 59.9, last 59.7.
· The three departments of China encouraged four kinds of household appliance manufacturers such as TV sets, refrigerators, washing machines and air conditioners to carry out the a recycling target responsibility mechanism, build a reverse recycling system of waste household appliances based on the product sales and maintenance service network, further increase the recycling channels, and unblock the production, circulation, consumption and recycling of household appliances.
Iron Ore Key Indicators:
· Platts62 $183.15, -1.00, MTD $183.57
· Australia’s Riley mine resumed iron ore mining in the second quarter, but the shipment of the first batch of iron ore was delayed because the commissioning of the mine’s wet concentrator didn’t complete the operation test.
· FMG: a contractor at the Cloudbreak site caught Covid-19.
SGX Iron Ore 62% Futures& Options Open Interest (Aug 4th)
· Futures 72,414,700 tonnes(Increase 905,600 tonnes)
· Options 68,513,000 tonnes(Increase 79,400 tonnes)
Steel Key Indicators
· MySteel Rebar Inventory: Rebar production 3.18 million tonnes, down 3.31% w-o-w. Mills inventory 3.37 million tonnes, up 8.78% w-o-w. Circulation inventory 8.16 million tonnes down 0.98% w-o-w.
