FIS Iron Ore and Steel Market Update

MySteel Iron Ore Delivery Aug 5- 11th: Australia and Brazil delivered 23.84 million tonnes of iron ore, up 668,000 tonnes w-o-w.

Australia delivery to China up 169,000 tonnes. Rio delivery to China up 389.000 tonnes, BHP delivery to China up 517,000 tonnes. FMG delivery to China down 47,900 tonnes.

Brazil delivery to China 7.22 million tonnes, up 14,000 tonnes. Vale delivery to China down 125,000 tonnes, CSN delivery to China down 119,000 tonnes.

China 26 ports iron ore arrival totalled 15.76 million tonnes, down 2.91 million tonnes w-o-w.

Iran will potentially decrease iron ore export up to 50%  indicated by a source close to the mining industry. Iron ore exports are restricted by the government permission before any shipments are made.

China north-west provinces held a steel enterprise conference and will enforce reducing ineffective steel supply through production cut and furnace overhaul equivalent to 35,000 tonnes of pig iron production per day.

Morgan Stanley marked down iron ore 2019 price to $93, down 5% from previous expectations.

Trade Recommendation: short-termly neutral, mid-term bearish .