Verdict:
• Short-run Bearish.
Macro:
• China PBOC announced to promote loans for private enterprises and expanding financing venues for private enterprises.
• US December ISM service index decreased to 50.6, lower than expected 52.5, created the sharpest drop over past three months.
• Eurozone December CPI annual growth rate reached 2.9%, created the highest from October 2023. The traders lowered expectations on the interest cut in 2024.
Iron Ore Key Indicators:
• Platts62 $140.30, -2.90, MTD $142.66. The demand for IOCJ returned in short-term because of the decreasing supply of China domestic concentrates. There were two laycans of PBF traded. One was traded at fixed price at $138.3/mt. The other trade was traded in float price at $1.85 based on February index.
SGX Iron Ore 62% Futures& Options Open Interest (Jan 5th)
• Futures 109,587,800 tons(Increase 469,800 tons)
• Options 83,522,400 tons(Increase 2,058,000 tons)
Steel Key Indicators:
• TS billet down 10 yuan to 3650 yuan during weekends, however the supply was significantly smaller than the same period over last year. Thus, traders believed the downside room should be limited for billets.
Coal Indicators:
• An offer was $325 for PMV for 143,000mt, co-loaded with 35,000mt of PLV.
• China coking coal weakened as the correction of physical coke.