Verdict:
• Short-run Neutral.
Macro:
• ADP report said that US private sector employment rate increased by 140,000 jobs in February, created the biggest increase since December 2023. Annual pay up 5.1% on the year.
• CPAG Statistics: In February, the global manufacturing PMI was 49.1%. Although it decreased by 0.2% month on month, it remained stable at over 49% for two consecutive months, higher than the average level of 47.9% in the fourth quarter of last year, which indicated the economy recovery was on the way.
• According to China Customs, from January to February 2024, China imported 74.52 million tons of coal, a year-on-year increase of 22.9%. China imported 209.45 million tons of iron ore and concentrates, a year-on-year increase of 8.1%. China exported 15.91 million tons of steel, a year-on-year increase of 32.6%, and imported 1.13 million tons of steel, a year-on-year decrease of 8.1%.
Iron Ore Key Indicators:
• Platts62 $117.70, +0.45, MTD $117.03. Iron ore saw active trade yesterday following the acceleration of restocking activities of mills. After the improving of margins, mills expanded production from last week. BHP sold 80,000mt Fe60.5% JMBF with $3.2 over April 62% Index. The discount level enhanced cost-efficiency.
SGX Iron Ore 62% Futures& Options Open Interest (Mar 6th)
• Futures 98,444,000 tons(Increase 1,333,400 tons)
• Options 107,043,100 tons(Increase 303,000 tons)
Steel Key Indicators:
• Tangshan billet cost at 3633 yuan/ton, down 73 yuan/ton, the average loss at 153 yuan/ton.
Coal Indicators:
• China 110 sample coke washery plants operation rate 67.89%, up 1.8% on the week. Daily production of coke at 570,600 tons, up 9,300 tons on the week.