Iron Ore and Steel Market Updates
– Turkey Iskenderun mill Koc Metalurji will extend suspension to July. KM produced 1.2 million iron ore mtpa, 550,000 tonnes of rebar annually.
– Ukraine DCH group miner subsidiary Sukhaya Balka Jan – Apr production down 3.7% to 875,000 tonnes y-o-y.
– CISA and Vale tele-conference suggest Vale currently will not change the production target in the year 2020. Ex-China demand is lower during the year and iron ore delivery to China is expected to be higher in the year 2020 compared to the year 2019.
– Ganggu Construction Steel Inventory: production 2.06 million tonnes, up 1.83% w-o-w. Mills inventory 1.96 million tonnes, down 3.89% w-o-w. Circulation inventory 3.90 million tonnes, down 5.89% w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest(Jun 2nd)
– Futures 63,765,000 tonnes(increase 498,300 tonnes)
– Options 101,890,100 tonnes(increase 2,180,000 tonnes)
Verdict
– Short-term consolidating at high level.