News summary
The iron ore market remained stable, and the prices of PB powder and Jinbuba powder at the port remained flat. On the demand side, molten iron output increased, and steel mills 'profitability remained flat. On the supply side, China's iron ore imports from January to April increased by 7% year-on-year, and arrivals to Hong Kong increased significantly month-on-month. Inventories were flat at high levels and market fundamentals were loose, but they followed fluctuations in steel supply and demand. Investors are advised to pay attention to the macro environment and maintain a short-term bullish stance.
Newsletter text
[The spot price in the iron ore market is stable and the basis is convergent] According to the latest information, the prices of PB powder and Jinbuba powder at the port remain unchanged, at 885 yuan and 838 yuan per ton respectively. At the same time, the cost of PB powder and Jinbuba warehouse receipts remained at 925 yuan.
[Looking at the demand side, molten iron output continues to grow] The demand side shows positive signs. As of May 17, molten iron output increased by 2.5%.playearnblockchaingameslist.4,000 tons, reaching 236playearnblockchaingameslist.90,000 tons. Operating rates and capacity utilization increased slightly respectively, and steel mills 'profitability remained at 52%playearnblockchaingameslistlevel.
[On the supply side, the total amount of imported iron ore increased year-on-year from January to April.] Data from the Bureau of Statistics show that in the first four months of this year, the total amount of imported iron ore reached 412 million tons, a year-on-year increase of 7%. The number of port arrivals increased significantly this week, with port 45 and port 47 arriving at 28.47 million tons and 30.28 million tons respectively, a month-on-month increase of 7 million tons and 8.25 million tons respectively.
[Inventory situation, iron ore inventories hover at high levels] In terms of inventories, iron ore generally remains at a high level. As of May 20, the iron ore inventory of 45 ports was 147.4 million tons.
[Market view, iron ore fluctuates at a high level and has a small basis] The current market view believes that iron ore prices remain high and fluctuates. The market performance was strong yesterday, with the closing price in night trading reaching 900 yuan per ton, and the basis is around 40 yuan. Although annual growth expectations remain, steel mills accelerate production, and hot metal output has increased month-on-month, iron ore inventories are high and fundamentals are loose. Iron ore as iron elementplayearnblockchaingameslistPart of it is more affected by fluctuations in steel supply and demand, and the steel supply and demand situation is good. The current macroeconomic environment is generally optimistic. Investors are advised to consider short-term long positions around 850 yuan and temporarily hold long positions.