Resource Stock Review - June 19

Fundamentals, according to Steel Union data, total shipments of Australia and Brazil's 19 Hong Kong iron ore mines were 26.01 million tons, a decrease of 441,000 tons; the total volume of arrival at China's 47 ports was 247.42 million tons, an increase of 4.626 million tons; and a total of 23.134 million tons arrived at port 45, an increase of 3.532 million tons over the previous month. On the demand side, the average daily iron and water production of 247 steel mills was 2,425,600 tons, an increase over the previous month; the average daily port drain volume was 2.9617 million tons. On the inventory side, the total stocks of iron ore imported from Port 45 were 128.5 million tons, an increase of 2.28 million tons over the previous Monday. In summary, at the macro level, there was downward pressure on the economy in the second quarter. After the central bank cut interest rates, the market had strong expectations for stimulus policies, and the market transaction logic was mainly driven by expectations; at the industrial level, iron ore supply and demand were strong, but there is already a trend of continuous accumulation of stocks. Short-term iron ore prices are expected to be mainly affected by market expectations.

Shanshen Iron Ore (3047.HK) closed at HK$17.35, down 0.52%

In May, China Coal Energy produced 68,000 tons of polyethylene, up 3% year on year and 6.3% month on month; sales volume was 68,000 tons, up 7.9% year on year, and remained flat month on month. Polypropylene production was 63,000 tons, down 4.5% year on year and up 5% month on month; sales volume was 60,000 tons, down 9.1% year on year and 7.7% month on month.

It can be seen from this that polyolefin production in May totaled 131,000 tons, down 0.8% year on year and up 5.6% month on month; sales volume was 128,000 tons, down 0.8% year on year and 3.8% month on month.

Urea production in May was 184,000 tons, down 1.1% year on year, up 29.6% month on month; sales volume was 150,000 tons, down 22.7% year on year, down 17.1% month on month.

In May, the company's methanol production was 168,000 tons, down 4% year on year and up 28.2% month on month; sales volume was 165,000 tons, up 4.4% year on year and 18.7% month on month.

The announcement stated that due to the impact of many factors, including (but not limited to) national macroeconomic policy adjustments, changes in domestic and foreign market environments, bad weather and disasters, equipment maintenance, safety inspections, and changes in coal mine geological conditions, etc., the announced production and operation data may vary greatly from month to month.