Market Verdict on Iron Ore：
• Bearish.
Macro
• U.S. last week jobless claim reached 166,000, a new low since the year 1968. Est. 200,000, last 202,000.
• China Security News: The analysts indicated that the market potentially see interest rate decrease in Q2.
Iron Ore Key Indicators:
• Platts62 $154.65, -0.40, MTD $158.56. Seaborne market iron ore prices fell as the pandemic uncertainties and period last longer than expected. Some Chinese cities started a very strict transportation policy even with few infected cases. Steel margin narrowed for consecutive weeks from early March which kept mills and traders in a watch-and-see mode. Long-term contracts were few than expected. Some mills sources indicated they have completed the raw materials purchase before mid-April.
• Ukraine miner Ferrexpo indicated the Q1 pellets production down 11% from last Q4 because of the war.
SGX Iron Ore 62% Futures& Options Open Interest (Apr 8th)
• Futures 78,849,000 tonnes(Increase 1,600 tonnes)
• Options 82,304,000 tonnes(Increase 420,000 tonnes)
Steel Key Indicators
• Steelbank construction steel 8.13 million tonnes, down 2.38% w-o-w. HRC 3.02 million tonnes, up 3.05% w-o-w.
• Ukraine steel mill ArcelorMittal Kryvyi Rih and Metinvest are striving to recover production at normal and seeking export opportunities.
Coal Indicators
• FOB Australia PLV coking coal up $8 at $404 last Friday. Jingtang PLV Australia coking coal up 100 yuan/tonne at 3900 yuan/tonne, because of the continuous decline on the port.
• The European Council adopt the fifth package of sanctions against Russia including imports ban on coal products announced on April 8th.
