Iron Ore and Steel Market Updates
– China 45 ports iron ore inventories at 106.97 million tonnes, down 560,000 tonnes w-o-w. Australia iron ore port inventories 61.29 million tonnes, up 780,000 tonnes w-o-w. Brazil iron ore 20.71 million tonnes, down 1.07 million tonnes w-o-w.
– Mysteel researched 247 blast furnace operation rate at 91.67%, up 0.65% w-o-w. Utilisation rate 92.35%, up 0.45% w-o-w. Daily pig iron production 2.46 million tonnes, up 11,900 tonnes.
– A potential new legal battle is brewing for Vale SA as Brazilian prosecutors look into whether the iron-ore giant is doing enough to keep workers safe at its top mines.
China Heavy Rain
– China Ministry of Water Resources: China currently has 148 rivers signaling flood warning. Southern area has occurred the first flood during the year.
SGX Iron Ore 62% Futures& Options Open Interest(Jun 11th)
– Futures 69,244,000 tonnes(increase 498,000 tonnes)
– Options 108,680,600 tonnes(increase 1,220,000 tonnes)
Verdict
– Short-term neutral.