Market Verdict on Iron Ore：
· Iron ore neutral to bullish.
Macro
· Commodity market witnessed a massive growth in May since a concern on Indian pandemic spread caused a new round of chain-effect. In addition, China-Australia tension also contribute to the metals growth.
· IMF indicated world countries need to be aware of the interest rate increase, in particular U.S. The countries with heavy debts potentially squeezed because of the interest rate raise. The world recovery faces a huge imbalance risk.
· Global April PMI corrected m-o-m, however maintained over 50% for the previous 10 months, and maintained over 57% during current two months, indicating a slow down on growth rate. The stable recovery trend has not changed.
Iron Ore Key Indicators:
· Platts62 $202.65, +9.95, MTD $192.86. Platts created the biggest single day increase of the year. Index refreshed historical high. Port trades significantly increased. However seaborne trades was less aggressive, PBF traded with $5.9 premium based on June Index, the similar trade was reported at $6 on April 29th.
· MySteel 45 ports iron ore inventories at 129.58 million tonnes, down 689,100 tonnes w-o-w. Daily evacuation 2.96 million tonnes, down 73,100 tonnes w-o-w. Australia iron ore 66.23 million tonnes, down 154,800 million tonnes w-o-w. Brazil iron ore 38.89 million tonnes, down 65,600 tonnes w-o-w. 126 ships at ports, up 24.
SGX Iron Ore 62% Futures& Options Open Interest (May 6h)
· Futures 76,719,900 tonnes(Increase 58,000 tonnes)
· Options 59,543,000 tonnes(Increase 1,070,000 tonnes)
Steel Key Indicators
· MySteel 18 EAF mills average profit 536 yuan/tonne, up 95 yuan/tonne w-o-w. 