Market Verdict on Iron Ore：
• Neutral.
Macro
• U.S. President Biden and Democratic Senator Manchin will make a progress on tax and spending plans to advance the economic agenda. The three major US stock index collectively closed higher, with the NASDAQ up 2.4%, the S & P 500 index up 1.78% and the Dow up 1.61%, recorded the largest single day increase since December 8th.
• Clarkson statistic indicated that global fleet trades reached 45.07 million CGT, up 138% y-o-y, refreshed a 8-year record.
Iron Ore Key Indicators:
• Platts62 $123.80, +0.60, MTD $108.77. Seaborne iron ore were strong during the current two trading days, however onshore iron ore at ports were weak. DCE iron ore and port iron ore revealed an expectation of continuous improved port inventories provided variety of deliverable resources, which alternatively lower the benchmark price on DCE value. Seaborne iron ore currently revealed a real demand market after China completed the growth plan of the year 2021, which left more room of steel production in the following few months.
• China 45 ports iron ore arrivals at 22.31 million tonnes, up 665,000 tonnes w-o-w. Northern six ports total iron ore arrivals at 10.61 million tonnes, up 1.29 million tonnes w-o-w.
• Vale exported 2.5 million tonnes of iron ore in the first 11 months of the year 2021, up 3.7% y-o-y.
SGX Iron Ore 62% Futures& Options Open Interest (Dec 21st)
• Futures 93,861,600 tonnes(Increase 1,831,100 tonnes)
• Options 63,193,000 tonnes(Increase 1,177,000 tonnes)
Steel Key Indicators
• Ganggu Construction Steel Inventory: production 5.26 million tonnes, down 50,200 tonnes w-o-w. Mills inventory 4.81 million tonnes, up 350,300 tonnes w-o-w. Circulation inventory 5.598 million tonnes, up 23,200 tonnes w-o-w.
Coal Indicators
• China Coal Resources News indicated that Shanxi province in China closed many under qualified coking capacities accounted 5.84 million tonnes of coal, however new built capacities have some time lag to fill the gap. As a result, coal supply remain tight expected through December and next January in western China.
