Verdict:
• Short-run Neutral.
Macro:
• Fed governor Rafeal Bostic said that inflation is expected to “slowly” return to the 2% target. Thus it would be appropriate for the Fed to cut interest rates twice by 25 basis points before the end of this year.
• China government work report indicated the GDP growth target for 2024 at 5%, unchanged from 2023.
Iron Ore Key Indicators:
• Platts62 $117.75, +2.35, MTD $116.58. Iron ore market saw signals of stablisation after a huge drop in February. There was a 90,000mt trade of NHGF at $116.7/mt yesterday. The seaborne trade and ports trade were in general weaker than pre-holiday level.
• Australia and Brazil total shipments at 25.45 million tons, up 4.66 million tonnes on the week.
SGX Iron Ore 62% Futures& Options Open Interest (Mar 4th)
• Futures 96,803,200 tons(Decrease 491,800 tons)
• Options 105,889,600 tons(Increase 346,000 tons)
Steel Key Indicators:
• MySteel surveyed 40 EAFs average cost at 3991 yuan/ton, down 29 yuan/ton, average loss at 49 yuan/ton.
Coal Indicators:
• The FOB Australia coking coal index unchanged at $307. There was 80,000mt PLV reselling interest on the market, indicating a gradual weakened demand market.
