Verdict:
• Short-run Neutral.
Macro:
• US jobless claims last week at 210,000, estimated 213,000, last 209,000.
Iron Ore Key Indicators:
• Platts62 $110.65, +4.15, MTD $110.96. The procurement of iron ore was majorly based on real-demand. The market participants agreed a slow demand for iron ore compared to past five years during same period. However, they generally thought that the total demand on iron ore should not become much lower in Q2.
• 45 iron ore port inventories at 143.66 million tons, up 803,600 tons on the week, up 7.61 million tons on the year. Daily evaluations at 2.959 million tons, down 48,500 tons on the week, down 74,400 tons on the year.
SGX Iron Ore 62% Futures& Options Open Interest (Mar 21st)
• Futures 119,146,900 tons(Increase 2,837,700 tons)
• Options 138,283,000 tons(Increase 2,424,400 tons)
Steel Key Indicators:
• Zenith Group decreased ex-work rebar price delivered in March by 100 yuan/ton at 3700 yuan. The wire-rod price delivered in March down by 50 yuan/ton at 4000 yuan/ton.
• Tangshan average billet cost at 3481 yuan/ton, down 86 yuan/ton on the week. Average steel making loss at 91 yuan/ton.
• MySteel sample steel mills total inventories 93.945 million tons, up 1.247 million tons on the week, up 2.43 million tons on the year.
Coal Indicators:
• Australia FOB coking coal down 9.1% to $244.5/mt, because sellers cut offers lower to gain liquidity. However buyers withdrew bids and await for stablisation. The oversupply potentially led to further price cut in FOB market.
• Most of China’s cokery plants accepted the price cut on prime coke. Coke price down 600 -660 yuan/ton for the last six rounds