Market Verdict on Iron Ore：
· Iron ore neutral to bullish.
Macro
· China National Development of Reform Commission decides to indefinitely suspend all activities under the framework of the China-Australia Strategic Economic Dialogue jointly held by the National Development and Reform Commission of the People’s Republic of China and relevant ministries of the Australian Commonwealth Government, concerning Australian Commonwealth Government officials launched a series of measures to disrupt the normal exchanges and coopertaion between China and Australia out of Cold War mindset.
· U.S. April jobs created biggest increase over the previous seven-months, since companies increased production and encourage vaccinations rate.
· U.S. federal officials try to decrease the concern on Biden’s infrastructure spending, which might cause an overheated economy in following years.
Iron Ore Key Indicators:
· Platts 62% up $6.25/tonne at $192.7 yesterday compared with pre-holiday level on April 30th.
SGX Iron Ore 62% Futures& Options Open Interest (May 5th)
· Futures 76,661,900 tonnes(Increase 333,900 tonnes)
· Options 58,473,000 tonnes(Increase 465,000 tonnes)
Steel Key Indicators
· Ganggu Construction Steel: Production 5.63 million tonnes, up 85,300 tonnes w-o-w. Mills 4.99 million tonnes, down 273,300 tonnes. Circulation 11.5 million tonnes, down 623,200 tonnes w-o-w.
· MySteel Rebar Inventory: Rebar production 3.7693 million tonnes, up 1.89% w-o-w. Mills inventory 3.4082 million tonnes, down 3.18% w-o-w. Circulation inventory 8.9675 million tonnes, down 1.32% w-o-w.
· During Labor day holiday, Tangshan billet up 80 yuan/tonne at 5070 yuan/tonne based on the price of April 30th.
Coal Key Indicators
· China thermal coal market continuous the market squeeze. May theormal coal futures reached limit up for few minutes during Asian morning. Theormal coal futures rebounded 42% compared with February.
