Market Verdict on Iron Ore：
• Neutral.
Macro
• G20 finance ministers and central bank leaders said that the global economy continued to recover, but influenced by COVID-19 and other countries. The recovery process and policies were different among countries. The inflation pressure of some countries increased. The attending countries promised to take all available policy tools to against the impact of the epidemic and carefully exiting stimulus policies.
• China 1-year LPR 3.7%, est. 3.7%, last 3.7%. China 5-year LPR 4.6%, est. 4.6%, last 4.6%.
Iron Ore Key Indicators:
• Platts62 $133.50, +2.85, MTD $144.38. SGX jumped up on last Friday and cross weekends, although the seaborne trades were extreme light during the past few weeks. The overstretch on futures market potentially fall back since the real demand hasn’t initiated yet; major production restrictions were in continuance. DCE futures were soft following the weak physical sentiment.
• Market sources indicated that some China departments started to draft new policy on improving the iron ore port operation efficiency, increasing warehouse cost and preventing stocking up inventories. The relevant conference invited major port enterprises in northern China.
SGX Iron Ore 62% Futures& Options Open Interest (Feb 18th)
• Futures 92,557,900 tonnes(Increase 741,500 tonnes)
• Options 55,389,800tonnes(Increase 890,000 tonnes)
Steel Key Indicators
• China 71 EAFs average operation at 15.63%, up 12.05% w-o-w. EAFs operation expected to recover in early March.
Coal Indicators
• China northern coking coal import port Ganqimaodu cleared 103 trucks yesterday, low level according to historical data.