IRON ORE REPORT

Physical Iron Ore sentiment soared again as GlobalORE printed twice well above spot for2 cargoes of 62% Aussie fines, one @ 118.9, the other at 119. Steel finished productswere static today and SHFE Rebar closed relatively flat at 3485rmb + 2 ticks from lastyesty. Swaps traded furiously in a tight range outright and via the front month spreads asfollows: June 116116.25,July 115117,Aug 112.5115and the spread in sizebetween 2.25 and 2.5, Sep 112115,q3 114115,q4 at 114 and q114 early at 117.25.

    q3/q1 also printed at 3.25.

    In other news, China produced a record 67.0 Mt of crudesteel in May, up by 9.5% from the yearagolevel, according to the latest update from theNational Bureau of Statistics. Production for the first five months of 2013 rose by 9.3%yearonyearto 324 Mt from 297 Mt in the same period of 2012.

    Stocks in Japan and Hong Kong end with small losses after a choppy trading session asinvestors ponder whether the U.S. Federal Reserve will maintain its monthly bondpurchases. European stock markets move cautiously higher on Tuesday, as investorsremain wary ahead of the U.S. Federal Reserve’s policy meeting, on fears it could signal apotential slowdown in the bank’s asset purchases. U.S. stocks climb sharply on Tuesdayas the market voices confidence that Federal Reserve Chairman Ben Bernanke will allayworries about the central bank’s monetary policy. Oil was rangebound around 98 bucka abarrel.

    TSI 62% up $2.70 to $117.7 mtd$113.4

    TSI 58% up $0.60 to $104.1 mtd$103.1

    Platts 62% up $1.50 to $117.25