Market Verdict on Iron Ore：
• Neutral.
Macro:
• IMF predicted the global economy growth rate at 2.7% in 2023, there was 25% probability that the growth rate would be lower than 2%. IMF predicted that at least 1/3 of the countries would fall into economic recession.
Iron Ore Key Indicators:
• Platts62 $112.40, +1.70, MTD $108.61. India fines were active in Asia, with 22-23% discount at IODEX January Index, which potentially generate pressure to FMG or other low grade market. The winter cut in China was generally smaller compared to previous years, lump premium dropped from 0.1485dmtu from the beginning of December to 0.13dmtu. Chinese concentrates supply expected to increase as the loosening of pandemic control and normalisation of transportation.
SGX Iron Ore 62% Futures& Options Open Interest (Dec 9th)
• Futures 98,983,800 tons(Increase 1,084,400 tons)
• Options 82,060,300 tons(Increase 1,193,500 tons)
Steel Key Indicators:
• Tangshan average billet cost 3751 yuan/ton, up 47 yuan/ton on the week, average loss at 121 yuan/ton.
Coal Indicators:
• Australia FOB marketmaintained strong at $249-250, supported by the wet weather impact on eastern Australia PMV supply.
