Market Verdict on Iron Ore：
• Neutral.
Macro
• WTI reached $94.88/barrel, refreshed the high from the year 2014. LME Alumunium also created new high since the year 2008 previous Friday.
• Russia and U.S. both retreated the withdraw diplomatic personal and related staff in Ukraine, expecting the tightened geo-political relations.
• China Central Bank published the fourth quarter 2021 monetary execution report, emphasized the flexibility of leveraging monetary policy to precisely release liquidity into different industries.
Iron Ore Key Indicators:
• Platts62 $150.15, -3.60, MTD $148.94. Major trades at Chinese ports were PBF and SSF during the first three days after the long Chinese New Year Break. However due to the China’s investigation on false price information and Winter Olympic Games, physical trades were much less compared to last two years at same period. Pellets and lumps prices expected to remain weak in particular for laycans in late March or after March since strict production curb expected to end by the timing.
• China major departments including National Development of Reform Commission, General Admission of Market Supervision, and CISA appeal to improve iron ore market regulation and guarantee the stablisation.
• Indian Environmental Clearance Limit published the country’s iron ore capacity in the year 2021: SAIL 59.81 mtpa, NMDR 51.9 mtpa, Tata Steel 46 mtpa, RungtaSons 16.41 mtpa, Serauddin&Co 15.15 mtpa, AM/NS 12.66 mtpa, JSPL 10.61 mtpa, Vedanta 6 mpta.
SGX Iron Ore 62% Futures& Options Open Interest (Feb 11th)
• Futures 87,413,900 tonnes(Increase 1,016,500 tonnes)
• Options 47,046,300 tonnes(Increase 1,870,000 tonnes)
Steel Key Indicators
• Major end-users of steel recover production from this week and early next week according to surveys by multiple agencies in eastern China.
• Steel bank construction steel inventories 7.5 million tonnes, up 21.75% w-o-w. HRC inventories 3.19 million tonnes, up 13.17% w-o-w.
Coal Indicators
• China Shanxi Coal and China Coal set price roof of 5500Kcal thermal coal at 700 yuan/ton, to support the stablisation of the coal market.
