Iron Ore and Steel Market Updates
– Steelbank inventories: construction steel inventories 7.08 million tonnes, down 5.51% w-o-w. HRC inventories 2.08 million tonnes, down 5.88% w-o-w.
– China customs: China iron ore import 87.03 million tonnes in may, up 3.9% y-o-y. China steel export 4.4 million tonnes in may, down 23.4% y-o-y.
– Vale informed on the interdiction of Itabira Complex, however without adjusting the annual production target. Vale also claimed the potential impact of 2.7 million tonnes of this miners production target in next few months were already included in the 15 million tonnes of impact resulting from Covid-19.
– Shandong PBF offered up 40 yuan at 810 yuan.
SGX Iron Ore 62% Futures& Options Open Interest(Jun 5th)
– Futures 67,020,000 tonnes(increase 725,300 tonnes)
– Options105,112,600 tonnes(increase 1,480,000 tonnes)
Verdict
– Short-term consolidating at high level.