Verdict:
• Short-run Neutral.
Macro:
• EIA statistics indicated that US crude oil production reached 13.3 million barrels/day, refreshed historical high.
• UK CPI in November down 0.2% on the month, created the first negative number since July.
Iron Ore Key Indicators:
• Platts62 $134.95, +1.15, MTD $134.80. Seaborne market regained popularity after being quiet for half week. BHP sold NHGF at $133.8/mt. Rio Tinto sold PBF at $134.8/mt. There was CSN trade on float basis and more inquires.
• The second largest pellet seaborne miners, Swedish LKAB faces disruption extension to January after a train accident on December 17th.
SGX Iron Ore 62% Futures& Options Open Interest (Dec 20th)
• Futures 123,185,100 tons(Increase 1,669,500 tons)
• Options 107,378,700 tons(Increase 1,635,000 tons)
Steel Key Indicators:
• China steel exporters indicated that the Red Sea tension has so far limited impact in Asian area. The export prices yet changed for European countries as well.
• Tangshan billet cost 3884 yuan/ton, up 32 yuan/ton. The steel production loss at 264 yuan/ton.
Coal Indicators:
• The heavy snow in north China and Mongolia decreased the trucks loads and speed. MySteel estimated the three major Mongolia export ports cleared 1,535 trucks per day in mid-December, down 30.61% from early December.
