Market Verdict on Iron Ore：
• Neutral to bearish.
Macro
• Europe Union would impose tariff on steel fasteners exported from China by 22.1-86.5%.
Iron Ore Key Indicators:
• Platts62 $130.65, -9.65, MTD $145.37. SGX and DCE iron ore futures trades both improved on volumes from last night and this morning. However physical trade was still light. Some Chinese traders indicated that they have no motive to import since import loss was around 60-70 yuan/wmt on ports.
• MySteel 45 ports iron ore inventories at 160.34 million tonnes, up 1.44 million tonnes w-o-w. Daily evacuation 2.55 million tonnes, up 74,800 tonnes w-o-w. Australia iron ore 76.75 million tonnes, up 1.95 million tonnes w-o-w. Brazil iron ore 53.47 million tonnes, down 446,800 tonnes w-o-w. 148 ships at ports, down 7.
• FMG indicated the discount on low grade iron ore expanded, and C1 cost increased by 20% because the increased diesel and labor cost and the new miner operation cost in Eliwana increased the cost.
SGX Iron Ore 62% Futures& Options Open Interest (Feb 17th)
• Futures 91,816,400 tonnes(Increase 758,200 tonnes)
• Options 54,499,800 tonnes(Increase 830,500 tonnes)
Steel Key Indicators
• 40 independent EAFs construction steel average cost at 4873 yuan/ton, up 41 yuan/ton compared to pre-holiday. Average profit 12 yuan/ton, up 118 yuan/ton compared to pre-holiday level.
• Mysteel researched 247 blast furnace operation rate at 69.58%, up 1.39% w-o-w. Utilisation rate 75.44%, down 1.13% w-o-w. Daily pig iron production 2.03 million tonnes, up 433,700 tonnes w-o-w.
Coal Indicators
• China northern coking coal import port Ganqimaodu cleared 103 trucks yesterday, low level according to historical data.