Market Verdict on Iron Ore：
• Neutral to bullish.
Macro:
• Surveys indicated that Eurozone investing confidence index Sentix improved – 38.3 to 30.9, higher than expected 35, indicated the decrease in energy price prevent the shortage in winter.
• China customs statistics indicated that the first 10 months import amount at 34.62 trillion yuan, up 9.5% on the year. Export up 13% on the year, import up 5.2% on the year.
Iron Ore Key Indicators:
• Platts62 $87.95, -0.10, MTD $84.59. The poor steel margin in Chinese steel mills limited the interest in seaborne iron ores. Industrial buyers were not motivated by the macro sentiments recovery. Steel mills tolerance to Alumina impurities improved, 1-2.5% aluminum decreased by 30 cents to $1.7. MACF demand muted as the discount failed to reach the market expectations.
SGX Iron Ore 62% Futures& Options Open Interest (Nov 7th)
• Futures 98,407,800 tons(Increase 1,956,900 tons)
• Options 81,885,200 tons(Increase 180,500 tons)
Steel Key Indicators:
• Shagang Group increased F40 scrap price by 80- 100 yuan/ton, the first increase after a previous drop by 450- 500 yuan in October.
Coal Indicators:
• A deal concluded at $320 FOB Australia for 40,000mt of globalCOAL HCCA branded, which further lifted index.
