Daily Virtual Steel Mill Report 21/03/22

Market Verdict on Iron Ore：
• Neutral to Bearish.

 

Macro：
• CME FedWatch indicated that the 25 bps interest hike in March had reached 76.8%.
• The Swiss government has committed nearly 260 billion Swiss francs to rescue Credit Suisse, equivalent to one-third of Swiss GDP.

 

Iron Ore Key Indicators:
• Platts62 $126.50, -5.50, MTD $129.22. Steel market saw a cool down on daily trading volume. Some mills are thinking about locking price for far months. Spot steel price fell suddenly, which left no margin on production side again.
SGX Iron Ore 62% Futures& Options Open Interest (Mar 20th)
• Futures 110,865,100 tons(Increase 899,200 tons)
• Options 105,702,600 tons(Increase 5,174,500 tons)

 

Steel Key Indicators：
• China Customs: China total exported 7.53 million tons of flat steel, up 39.8% on the year. China exported 1.75 million tons of long steel, up 129.4% on the year.
Coal Indicators：
• Australia FOB coking coal index maintained unchanged from yesterday at $341/mt, however potentially saw a cool down on the trading activities. Indian coke mill indicated the price range potentially maintaining from $320 – 350/mt for longer period.