Verdict:
• Short-run Neutral.
Macro:
• US September PCE index up 3.7% on the year, created the lowest since May 2021, est. 3.7%, last 3.9%. PCE up 0.3% m-o-m, est. 0.3%, last 0.1%.
Iron Ore Key Indicators:
• Platts62 $121.80, +2.80, MTD $118.50. PBF saw active demand in market after a significant decrease on the premium for December cargoes from $5.5 to $4.1 last week. The impact of BHP strike was uncertain so far, while market participants are worried about the escalation of the event.
SGX Iron Ore 62% Futures& Options Open Interest (Oct 27th)
• Futures 143,325,900 tons(Increase 3,865,400 tons)
• Options 125,117,600 tons(Increase 1,090,000 tons)
Steel Key Indicators:
• United Automaker Ford Motor says a six-week strike by its union workers resulted a loss equal to 80,000 vehicles. Ford and UAW came to a tentative agreement last Wednesday, giving a 25% pay increase for workers.
Coal Indicators:
• The FOB Australia market index was stable after strong demand and supply reaching a consensus on price level at $350/mt.
• MySteel China sample ports imported coking coal inventories at 4.8281 million tons, down 154,900 tons on the week. Indian cokery plants are decreasing utilisation rate and looking for alternatives on PHCCs because of the high material cost.
