Market Verdict on Iron Ore：
• Neutral.
Macro:
• U.S. Federal increased interest rate by 25 bps, and reiterated to continue interest hike in 2023 without mentioning the possibility of interest decrease.
Iron Ore Key Indicators:
• Platts62 $126.70, -2.25.Physical market started to see great volume today after the derivatives market saw a consecutive correction for two trading days. JMBF and Yandi discount were similar to mid-January. Thus, the fixed price was rather high with bubbles created during Chinese holiday with no real trade. In addition, import margin became negative again, which potentially limit the growth of the index.
SGX Iron Ore 62% Futures& Options Open Interest (Feb 1st)
l Futures 94,317,600 tons(Increase 2,682,900 tons)
• Options 70,414,500 tons(Increase 1,495,000 tons)
Steel Key Indicators:
• Tangshan average billet cost 3912 yuan/ton, up 55 yuan/ton on the week. Average loss 102 yuan/ton, improved 95 yuan/ton from last week.
Coal Indicators:
• JSW tender saw firm higher bids from three buyers yesterday, however didn’t award the tender. The strong buying interest support index of Australia FOB coking coal increasing by $15 to $350/mt.
