Verdict:
• Short-run Neutral.
Macro:
• US August CPI up 3.7%, higher than expected 3.6%, last 3.2%. Core CPI up 4.3%, est. 4.3%, last 4.7%.
• Europe Union will launch a probe of EV subsidies against China.
Iron Ore Key Indicators:
• Platts62 $122.60, +1.95, MTD $119.21. The mid-grade saw massive fixed trade for October laycans yesterday. BHP sold NHGF at $121.6/mt. Rio sold PBF at $121.7. Vale sold BRBF at $124/mt. However low grade was the most popular concentrates as the low steel margin.
SGX Iron Ore 62% Futures& Options Open Interest (Sep 13th)
• Futures 124,034,600 tons(Increase 3,114,700 tons)
• Options 110,446,600 tons(Increase 1,609,900 tons)
Steel Key Indicators:
• Tangshan steel mills average billet cost at 3552 yuan/ton, up 5 yuan/ton, average loss at 22 yuan/ton.
Coal Indicators:
• The FOB Australia market jumped up $31.5, the biggest single day growth in the past six months, while CFR China coking coal up $2. The miner sold 40,000mt PMV Goonyella C to Indian steel mill JSPL at $321/mt, after fail to seize any offer during the past two weeks. The FOB Australia and CFR China spread went to high level at $23, while most of times the spread level should lie in – $20 to +$20 area. Traders saw the wide spread unsustainable in mid-run.
