Market Verdict on Iron Ore：
• Neutral.
Macro:
• China Caixin December PMI at 48.0, last 46.7, est. 46.8.
• U.S. December ADP employment increased by 235,000, higher than expected 150,000, last 127,000.
Iron Ore Key Indicators:
• Platts62 $117.20, +0.20, MTD $117.28. PBF float premium were assessed at $1.2-1.8 based on February index; the February demand grew significantly. The float premium was strong compared to fixed price. The winter iron ore stock for Chinese mills entered a end with Chinese New Year looming, with most of stocks were purchased in portside, with flexible size and time. Steel mills suffered negative production margin because the uptick of raw materials and low steel sales. The market expected a correction on iron ore with lower marginal demand.
SGX Iron Ore 62% Futures& Options Open Interest (Jan 5th)
l Futures 91,640,300 tons(Increase 1,843,900 tons)
• Options 67,614,100 tons(Increase 2,613,300 tons)
Steel Key Indicators:
• MySteel surveyed 40 independent EAFs average cost 4217 yuan/ton, up 38 yuan/ton. Average loss 16 yuan/ton, improved 39 yuan/ton from last week.
Coal Indicators:
• Australia PLV market continued seeing rebound, supported by discussion between China and Australia to reopen import. A new deal of PMV from Moranbah North for 50,000mt at $315.