Market Verdict on Iron Ore：
• Neutral.
Macro:
• China PBOC statistic indicated that December M2 up 11.8%, up 2.8% on the year, lower than 12.4% in November.
Iron Ore Key Indicators:
• Platts62 $118.70, -1.10, MTD $118.07.Seaborne saw the most active trade in January yesterday. IOCJ traded at $137.2. MACF traded at $119.2. JMBF traded with February discount of $4.85. Physical lump retreated from 0.14dmtu to 0.105 dmtu over past four weeks, since less curbs compared with previous years.
SGX Iron Ore 62% Futures& Options Open Interest (Jan 10th)
l Futures 98,251,700 tons(Increase 2,027,600 tons)
• Options 72,402,600 tons(Increase 1,282,500 tons)
Steel Key Indicators:
• Major Chinese mills started maintenance mode and entered Chinese New Year mode.
Coal Indicators:
• Chinese steel mills officially decreased physical coke price for the second rounds, total down 200-220 yuan/ton.
• Chinese coal production reached 2.59 billion tons in 2022, up 130 million tons from 2021, or 4.5%.
• The market was speculating on the seaborne metallurgical coal supply disruption because of the wet weather in Queensland.