Verdict:
• Short-run Neutral to Bullish.
Macro:
• US GDP accelerated to 4.9% in the third quarter, more than doubled the growth rate in last quarter and created the fastest growth rate in past two years, powered by spike in consumer spending. Economists generally expected that the growth rate to slow in Q4.
Iron Ore Key Indicators:
• Platts62 $119.00, -1.00, MTD $118.33. Two fixed price trades including a NHGF and a MACF were concluded at $118.9 and $117.85 respectively.
• India state-owned pellet maker KICOL halted iron ore pellet production for the third time s at its plant at Mangalore, India. The miner produced 350 million tonnes of pellets per year.
• FMG shipped 45.9 million tonnes of iron ore in Q3, down 3.4% on the year.
• SGX Iron Ore 62% Futures& Options Open Interest (Oct 26th)
• Futures 139,460,500 tons(Increase 1,807,100 tons)
• Options 124,027,600 tons(Increase 2,722,500 tons)
Steel Key Indicators:
• United Auto Workers reached a tentative agreement last night. HRC rebounded massively from $700/st to $900/st in the current two weeks.
Coal Indicators:
• There was a deal reported in FOB Australia market at $350.5/mt for 40,000mt PMVs with early December loading. Indian demand expected maintain strong as the restocking activities.
• The domestic market in China maintained stable as market worrying about the impact of production curb in winter. Major trades were in form of long-term in north-western China areas.
