Market Verdict on Iron Ore：
• Neutral to bullish.
Macro
• U.S. August CPI growth rate at 8.3%, est. 8.1%, last 8.2%. The market expected that the Federal would prefer to initiate aggressive interest hike by 75 bps next week.
• Chinese State Administration of Taxation indicated that from June to August, 3.553 million vehicles enjoyed the purchase tax reduction policy, with a cumulative amount of 23.04 billion yuan.
Iron Ore Key Indicators:
• Platts62 $104.25, +2.30, MTD $99.16. The structure curve of Oct-Nov22 recovered from low area at $0.35 to $0.55, which was a mid-level area because the medium of spread of second and third month was $0.57 tracing back last 12 months. PBF and NMHG regained popularity, with significantly improved volume in late half of August and discount/premium.
• 45 Chinese ports loaded 22.38 million tons of iron ore, up 4.136 million tons from last week.
• From the week commenced in September 5th, 19 Australia and Brazil ports total delivered 23.74 million tons of iron ores, down 2.26 million tons w-o-w.
SGX Iron Ore 62% Futures& Options Open Interest (Sep 13th)
• Futures 101,402,000 tons(Increase 1,838,500 tons)
• Options 89,686,100 tons(Increase 1,765,000 tons)
Steel Key Indicators
• POSCO announced to recover operation from 10th for its No. 3 blast furnace. No.2 and No.4 blast furnace would resume from September 12th respectively. POSCO previously suffered from fire accident and typhoon landing.
Coal Indicators
• Australia FOB coking coal maintained at $271.0-273.25 for almost three weeks – market was waiting for clearer direction. There was 75,000mt HCCLV Peak Downs offer at $275, with cut-off time for bids from 4-7p.m. this afternoon. There were $330-335 offers from U.S. Blue Creek No.7 and Oak Grove coking coal on the market during current two weeks, however no bid was close to the level.