Verdict:
• Short-run Neutral.
Macro:
• Anglo American agreed to sell iron ore, copper and gold royalties to Taurus Funds Management for up to $195 million in cash.
Iron Ore Key Indicators:
• Platts62 $103.20, -1.15, MTD $108.27. The seaborne trade was extremely quiet in July as physical traders became cautious during a diminishing demand on pig iron. Physical traders were only hunting some bottom area price or waiting for opportunities in late August.
• The total shipment of iron ore from Australia and Brazil was 23.825 million tons, a decrease of 908,000 tons on the week. The total amount of iron ore arrived at China ports was 23.76 million tons, a decrease of 4.894 million tons on the week.
SGX Iron Ore 62% Futures& Options Open Interest (Jul 22nd)
• Futures 111,730,500 tons(Increase 510,000 tons)
• Options 159,336,000 tons(Increase 685,000 tons)
Steel Key Indicators:
• The China EAFs average rebar cost at 3701 yuan/ton, down 22 yuan/ton on the week. Average loss at 185 yuan/ton.
Coal Indicators:
• The FOB coking coal market saw correction as PLV offer on the market for $230 remained unsold from last week. The market sentiment was poor and unsustainable demand.
