Market Verdict on Iron Ore：
· Neutral.
Macro
· The European Commission raised its inflation outlook for the euro area this year and next year, which is expected to be 2.4% and 2.2% respectively, but it is expected that inflation in the euro area will slow significantly to 1.4% in 2023, lower than the 2% target set by the European Central Bank previously. The European Commission raised its GDP growth forecast for the euro zone to 5% this year, and expected it to grow by 4.3% in 2022 and 2.4% in 2023.
Iron Ore Key Indicators:
· Platts62 $94.20, +4.70, MTD $95.28. Iron ore imported seaborne sources didn’t saw significant recovery on the back of China property warming in short-run, however China northern port side trades higher by 27 yuan/tonne on PBF. Physical traders majorly expect higher price today on port as well. The trade volume became a concern since northern steel mills mostly started maintenance from last week.
· MySteel 45 ports iron ore inventories at 150.06 million tonnes, up 3.02 million tonnes w-o-w. Daily evacuation 2.72 million tonnes, down 119,400 tonnes w-o-w. Australia iron ore 71.19 million tonnes, up 617,300 tonnes w-o-w. Brazil iron ore 51.88 million tonnes, up 2.11 million tonnes w-o-w. 178 ships at ports, unchanged.
· U.S. LCA statistic indicated five lakes area iron ore total delivery at 5.5 million tones in October, up 32.4% y-o-y. Jan – Oct total iron ore traded 42.9 million tones, up 32.7% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest (Nov 11th)
· Futures 73,702,600 tonnes(Increase 930,000 tonnes)
· Options 65,179,000 tonnes(Decrease 10,000 tonnes)
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