Verdict:
• Short-run Neutral.
Macro:
• The surge in US gasoline inventories raised concerns about sluggish demand, with investors questioning whether OPEC+production cuts can offset the impact of oversupply from other oil producing countries. WTI crude oil fell below the $70 mark for the first time since early July, 4% drop at $69.36 per barrel.
• The ADP report failed expectations, indicating weakness of the job market in US. The US treasury yields once reached 4.1% yesterday, the lowest level since September 1st.
Iron Ore Key Indicators:
• latts62 $133.65, +2.25, MTD $132.34. There was no trade from platform during past two trading days. BHP sold two cargoes of JMBF totaled 170,000mt at January Index + $2.65, which was the same level to early of the week. Vale sold IOCJ with 65% Index + $1.05 after offering for few days. The premium product became hard to sell as the extreme low steel margin in China.
SGX Iron Ore 62% Futures& Options Open Interest (Dec 6th)
• Futures 120,899,700 tons(Decrease 636,800 tons)
• Options 94,705,800 tons(Increase 427,900 tons)
Steel Key Indicators:
• India industry body FICCI proposed to seek an extension of subsidies on EVs. Indian EV sales rose to 152,613 units in November, up by 9.2% on the month, 26% on the year.
Coal Indicators:
• The FOB Australia market saw higher offers because of the potential cyclone impact. However, BOM is predicting a weaker wind level on port areas in the following hours. There is yet any report of impact on loading or laycans so far.
