Market Verdict on Iron Ore：
• Neutral to bearish.
Macro
• U.S. December CPI up 7% y-o-y, created the highest since June, 1982. DXY corrected massively from 95.61 to 94.9, which supported U.S. dollar linked commodities and triggered a big rebound shortly across commodity sector.
Iron Ore Key Indicators:
• Platts62 $131.60, +3.00, MTD $126.12. Iron ore saw the most active two weeks on seaborne trades from last July. However Brazil rain was expected to end in few days. In addition, the supply disrupt was majorly linked with high grade iron ore. Australia delivery was normal and climbing up.
• MySteel expect the Brazil miners impact on iron ore delivery range from 1.65- 4.95 million tonnes. The miners didn’t change their annual shipment target as the bad weather and maintenance were included in their guidance.
SGX Iron Ore 62% Futures& Options Open Interest (Jan 12th)
• Futures 81,028,600 tonnes(Increase 897,900 tonnes)
• Options 40,189,300 tonnes(Increase 669,800 tonnes)
Steel Key Indicators
• MySteel Rebar Inventory: Rebar production 2.84 million tonnes, up 1.38% w-o-w. Mills inventory 1.8 million tonnes, down 4.5% w-o-w. Circulation inventory 3.7 million tonnes, up 7.57% w-o-w.
• Tangshan average steel mill billet cost 4139 yuan/tonne, up 128 yuan/tonne. Steel margin 231 yuan/tonne, down 18 yuan/tonne.
• 91 China BF mills average rebar cost 4417 yuan/tonne, down 77 yaun/tonne w-o-w. Average profit 413 yuan/tonne, up 5 yuan/tonne.
Coal Indicators
• An Indonesia media said the country will start to clear 37 coal ships on Wednesday evening.
FIS API Blog
