Verdict:
• Short-run Neutral to Bearish.
Macro:
• Citigroup expected the Bank of England to cut interest rates for the first time in August next year, later than previously expected in May, due to increased inflation risks and personal tax cuts.
• The ecological and environmental protection inspection teams will started to supervise on industrial pollution covering most of northern China provinces in November and December.
Iron Ore Key Indicators:
• Platts62 $134.80, -1.20, MTD $129.91. Vale sold 85,000mt of BRBF at $134.4/mt. The buying activities became weak in late half of the week.
• Australia union workers have decided to withdraw the action and accept the deal offered by BHP according to local media, yet to receive confirmation from BHP side.
• MySteel estimated total iron ore inventories at 113.09 million tons, up 822,000 tons on the week. Daily evacuations at 3.0154 million tons, down 9,000 tons on the week.
SGX Iron Ore 62% Futures& Options Open Interest (Nov 23rd)
• Futures 137,571,400 tons(Increase 2,879,900 tons)
• Options 121,396,100 tons(Increase 900,000 tons)
Steel Key Indicators:
• MySteel estimated 247 sample steel mills BF utilisation rate at 87.96%, down 0.05% on the week, up 5.44% on the year. Daily pig iron production at 2.35 million tons, down 1,400 tons on the week.
Coal Indicators:
• MySteel estimated a reduction on production by 137,000 tons of coals after Luliang, China started safety check on some of miners.
