Market Verdict on Iron Ore：
• Neutral.
Macro：
• China PM Li Qiang stated that the economic performance in March was better than that in January and February. The main economic indicators were improving, including consumption, investment, employment, and prices. The government will introduce new policies and measures to support business development.
• International Monetary Fund (IMF) predicted that China’s economic growth will contribute one-third or more to global economic growth this year. In the latest issue of the World Economic Outlook Report, the IMF raised its growth forecast for China’s economy this year from 4.4% to 5.2%.
• In the fourth quarter of 2022, the final value of the core PCE price index in U.S. rose 4.4% month on month, with an expected increase of 4.3% and an initial increase of 4.3%; A year-on-year increase of 4.8% and an initial value increase of 4.8%.
Iron Ore Key Indicators:
• Platts62 $128.00, +2.90, MTD $127.05. The iron ore market was back to normal as the risk appetite shift back. Physical trades on both float and fixed improved significantly. Rio Tinto sold a fixed price laycan for PBF at $127.3. There was at least 1 laycan of PBF trade per day from last week. BHP sold JMBF at discount of $4.15 over May average. MB65-P62 spread printed 9-month high at $16 supported by the Chinese mills production favored strategies.
SGX Iron Ore 62% Futures& Options Open Interest (Mar 30th)
• Futures 109,050,600 tons(Increase 1,384,400 tons)
• Options 114,316,600 tons(Increase 2,967,500 tons)
Steel Key Indicators：
• China sample steel mills blast utilisation rate at 90.56%, up 1.28% on the week. Daily pig iron production at 2.4335 million tons, up 35,300 tons on the week.
Coal Indicators：
• Australia FOB market saw correction by seeing softened offers and less bids on the market. Secondary quality coals are surplus on this market. The tradeable value for PLV was from $310-317/mt.