Market Verdict on Iron Ore：
· Neutral.
Macro
· European statistic bureau: 19 member countries at Euro Zone economy growth rate up 3.75 compared to Q3 of last year, indicated a strong recover after the pandemic.
· China and U.S. internet conference revealed a friendly signal of the trades and relations between the two countries and involved multiple strategic cooperation.
Iron Ore Key Indicators:
· Platts 62%: $90.40 (+1.25) MTD $93.77. Iron ore seaborne market gradually return stable during the week, as several NMF trades in fixed price. Port iron ore stock growth majorly stressed down the front month contract as they were linked with delivery sentiments. However the contracts in the year 2022 were mostly connected with the CFR import cost. DCE created contango market in mid of this week. Contango market was normally a signal of periodic low historically.
· Last week seven major ports of Australia and Brazil iron ore total inventories reached 12.13 million tonnes, down 479,000 tonnes w-o-w, the inventory level was close to average number of the year.
SGX Iron Ore 62% Futures& Options Open Interest (Nov 16th)
· Futures 75,862,100 tonnes(Increase 703,300 tonnes)
· Options 67,914,000 tonnes(Increase 1,405,000 tonnes)
Steel Key Indicators
· China Ministry of Industry and Information Technology Department: Jan – Oct crude steel production completed a year to year growth rate decrease. At the same time, steel price continuous to decline. Iron ore returned to a consolidation area. Steel enterprises profit increased compared with both year 2019 and year 2020.
· Ganggu Construction Steel Inventory: production 2.41 million tonnes, down 66,000 tonnes w-o-w. Mills inventory 931,000 tonnes, down 25,000 tonnes w-o-w. Circulation inventory 3.05 million tonnes, down 218,900 tonnes w-o-w.
Coal Indicators
· China National Development of Reform Commission: China winter and spring coal supply was stablised and government will enforce the signing of long-term contracts.
