Verdict:
• Short-run Neutral.
Macro:
• BOE chief economist Huw Pill said UK inflation will soon fall in line with the lower rates as the rest of the world, with less spending on energy sector.
• According to data from the China Federation of Logistics and Purchasing, the global PMI index in October was 47.8%, a decrease of 0.9% from the previous month, ending the three consecutive upward trend. The index was below 50% for 13 consecutive months, indicating a long-term downward trend in the global manufacturing industry.
Iron Ore Key Indicators:
• Platts62 $127.10, +0.30, MTD $126.46. Seaborne market was quiet in early this week. MACF was traded at $126.5/mt, while the last trade was $117.85 in October 26th. The market indicated less interest on PBF because of the active and cost-efficient alternatives, in particular during a low steel margin time in China.
SGX Iron Ore 62% Futures& Options Open Interest (Nov 6th)
• Futures 122,829,900 tons(Increase 1,097,900 tons)
• Options 98,426,300 tons(Increase 358,000 tons)
Steel Key Indicators:
• MySteel 40 sample EAFs average steel production cost at 3900 yuan/ton, with average loss at 39 yuan/ton. However the EAFs calculated in valley electricity load realised a profit of 60 yuan/ton.
Coal Indicators:
• The FOB Australia market index was stable seeing same level offer on $350/mt for HCCA Branded coal during current two weeks. However, the less buying interest drag down the index level to lower place. Market participants were worrying about the continuous cokery plants curb would decrease the sustainability of prime coal demand in China winter.
