Holding Mid July Ranges, As Markets Await 3rd Plenum

The active SGX iron ore contract is tracking higher, last near $109.20/ton. Earlier highs were just above $110/ton, while we opened at $107.80/ton. This keeps close to the mid point of July ranges to date.

• Onshore steel prices are also higher, up a little over 1% for hot rolled coil and rebar futures at this stage.
• The run of data from China earlier, was on balance, softer than expected, headlined by the Q2 GDP miss. the industry side wasn't as poor though, with IP growth coming in slightly above expectations. Infrastructure spending also held up.
• Locally equity sentiment is marginally higher, as the onshore market awaits the outcome of the Third Plenum meeting held today through to Wednesday.
• At the end of last week iron ore inventories continued to track higher at China ports. We are at fresh highs back to April 2022.