Iron Ore and Steel Market Updates
– NDMC produced 2.29 million tonnes of iron ore, down 24.7% y-o-y. NDMC sold 2.55 million tonnes of iron ore down 24.3% y-o-y.
– Vietnam steel mill HòaPhát sign an agreement to sell 120,000 tonnes to steel billet to CIEC Group in Hangzhou, China, with a contract value around 43 million US dollars. This is a biggest order for HòaPhát in history.
– Mysteel surveyed 64 mills import sintering ores inventory at 16.28 million tonnes. Daily consumption at 623,100 tonnes. Inventory turnover in 23 days.
– MySteel Rebar Inventory: Rebar production 3.95 million tonnes, up 0.35% w-o-w. Mills inventory 2.84 million tonnes, down 6.9% w-o-w. Circulation inventory 7.74 million tonnes, down 3.64% w-o-w.
China Coke
– China physical coke price has increased 400 yuan from mid-may and coke mills planning for another few rounds of increase, since Shandong, Shanxi, and Jiangsu Province start to eliminate some low quality coke capacities. In addition, coke inventories are low in some areas.
SGX Iron Ore 62% Futures& Options Open Interest(Jun 3rd)
– Futures 64,905,200 tonnes(increase 1,140,200 tonnes)
– Options 103,532,600 tonnes(increase 1,642,500 tonnes)
Verdict
– Short-term consolidating at high level.