Verdict:
• Short-run Neutral.
Macro:
• The US Federal Reserve president Jereme Powell and policymakers decided to stop interest hike in November, because the tightened financial conditions.
• The air quality became poor in northern and mid China in first half of November predicted by Ministry of Ecology and Environment.
Iron Ore Key Indicators:
• Platts62 $125.35, +2.20, MTD $125.35. Seaborne market saw no trade during trading window, which likely indicated the current traders were reluctant to accept high index trade or fixed price. There was a 55,000 mt Fe62% pellet traded for second-half November loading.
SGX Iron Ore 62% Futures& Options Open Interest (Nov 1st)
• Futures 116,426,700 tons(Increase 1,075,400 tons)
• Options 95,685,300 tons(Increase 942,500 tons)
Steel Key Indicators:
• Tangshan average billet cost at 3724 yuan/ton, up 10 yuan/ton on the week. Average steel production loss at 214 yuan/ton, down 50 yuan/ton on the week.
Coal Indicators:
• The FOB Australia market index was stable seeing same level offer on $350/mt for HCCA Branded coal during past 2 days. However, the bid-off width was too wide to conclude.
• China steel mills in Hebei province started to propose a 100-110 yuan/ton decrease. Market expected a general landing over China areas for this round of cut.
