Iron Ore and Steel Market Updates
– MySteel 45 ports iron ore inventory at 107.54 million tonnes, down 311, 500 tonnes w-o-w. Daily evacuation 3.14 million tonnes up 121,400 tonnes w-o-w. Australia iron ore on ports at 60.51 million tonnes down 499,800 tonnes w-o-w. Brazil iron ore on ports at 21.79 million tonnes down 147,700 tonnes w-o-w. 98 ships at ports down 1 w-o-w.
– China Steel Development and Research Institute: 26 listed steel mills in China average profit 11.15%, down 4.23% y-o-y, indicate the marginal benifit of supply side reform is diminishing and iron ore price increase has exhausted big part of steel margin.
– Tangshan PBF offerred down 5 yuan in the morning at 770 yuan.
– World Steel Association: Global steel demand in the year 2020 predicted down 6.4% y-o-y, 2021 up 3.8% y-o-y. China steel demand in 2020 up 1% y-o-y. Ex-China steel demand predicted down 11.6% y-o-y in the year 2020, and up 9.2% y-o-y in the year 2021.
China Coke
– China coal mines resumed operation after political conference. Mongolia resumed export coals to China, the over supply from Mongolia coals potentially pull down domestic coal market.
SGX Iron Ore 62% Futures& Options Open Interest(Jun 4th)
– Futures 65,515,075 tonnes (increase 609,875 tonnes)
– Options 103,632,600 tonnes(increase 100,000 tonnes)
Verdict
– Short-term netural.