Iron ore: good transaction, questionable production limit

Gold ten futures on June 19, last week, the total supply side shipments rose; Australia near the end of the fiscal year impulse is obvious, Brazil after the reduction of precipitation shipments resumed, non-mainstream shipments down. Our country's volume to the port rose month-on-month, at a high level over the same period. Demand side performance neutral, 247 daily average molten iron + 35,600 tons to 2.3931 million tons, steel mills are still in the process of resuming production; 247 steel mills profitability down, coil profits up. Iron ore spot transaction data up, steel mills good profits and high-quality mainstream ore demand is better. Inventory side still maintain a high inventory state, steel mills imported ore inventory increased by 320,000 tons; 45 port inventory decreased by 350,000 tons. The supply side will be in a loose state for a long time; molten iron is still in the process of resumption of production; the inventory of finished materials and billets has accumulated, and the end point demand has declined. The short-term iron ore is suppressed by high inventory, and the steel mills below are actively buying goods to form a certain support. It is necessary to pay attention to the height of the resumption of molten iron production and the toughness of the end point demand. There are many rumors of recent production restrictions, and the authenticity remains to be seen.