Market Verdict on Iron Ore：
• Neutral to bullish.
Macro:
• U. S. October CPI up 7.7%, lower than 8.2% at September, lower than expected. created the smallest since January 2022. U. S. stock index and industrial commodities rebound following the news. 10-Year Note yield fell below 4%. Investors expected a slowdown on interest hike in December.
• China October M2 balance at 261.29 trillion yuan, annual growth rate 11.8% on the year, 0.3% slower than September, up 3.1% than last October.
Iron Ore Key Indicators:
• Platts62 $89.55, +0.50, MTD $85.94.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.
• At the 5th China International Import Expo, Vale signed MOU Liaoning Port Co., Ltd., the operator of Dalian Port. Rio Tinto Group signed MOU with China Mineral Resources Group Co., Ltd.
SGX Iron Ore 62% Futures& Options Open Interest (Nov 10th)
• Futures 104,097,800 tons(Increase 2,559,600 tons)
• Options 82,911,200 tons(Increase 640,000 tons)
Steel Key Indicators:
• Tangshan average billet cost 3660 yuan/ton, down 57 yuan/ton on the week. Average loss at 170 yuan/ton.
Coal Indicators:
• A deal concluded at $313 FOB Australia for 40,000mt of Saraji PLV to JFE. As expected, the continuous lower trade dragged down the index price from $320.5 because the real trade has some negotiation room. There was also a unconfirmed offer at $310 for globalCOAL branded PLV.
• Chinese steel mills started to third round of price cut on met coke by 100 yuan/ton.
