Market Verdict on Iron Ore：
• Neutral.
Macro
• China Caixin December PMI 53.1, est. 51.7. Last 52.1.
• China central bank PBOC: China financial system was generally stable. The lending rate for enterprises was below 5% in average, creating the new low historically. The Minister of Finance said the department will devoting in decrease taxes in the year 2022 and increase the market dynamism.
Iron Ore Key Indicators:
• Platts62 $128.25, +2.90, MTD $124.00. Three Yandi laycans were traded yesterday. PBF and NMF were traded only when market saw some corrections during the previous four weeks, which indicating a potential roof area in physical market was built currently.
• MySteel 45 ports iron ore inventories at 156.05 million tonnes, down 205,500 tonnes w-o-w. Daily evacuation 3.18 million tonnes, up 235,900 tonnes w-o-w. Australia iron ore 72.28 million tonnes, up 577,100 tonnes w-o-w. Brazil iron ore 55.45 million tonnes, down 446,600 tonnes w-o-w. 161 ships at ports, up 2.
SGX Iron Ore 62% Futures& Options Open Interest (Jan 6th)
• Futures 77,734,200 tonnes(Increase 1,601,300 tonnes)
• Options 38,723,500 tonnes(Increase 348,000 tonnes)
Steel Key Indicators
• Steel mills in China concentratedly introduced winter stock strategies for steels. The demand market for winter stock steels were very active compared to previous year.
• Mysteel researched 247 blast furnace operation rate at 74.2%, up 3.19% w-o-w. Utilisation rate 77.89%, up 2.1% w-o-w. Daily pig iron production 2.09 million tonnes, up 55,100 tonnes.
Coal Indicators
• Indonesia may resume its coal exports by the end of the week, a government source has told Lloyd’s List. An energy ministry spokesman said senior officials reviewed today the domestic supply-demand situation, but did not reach a conclusion, prompting more deliberations.
• China Shandong and Hebei province increased coke price for the second round, total up 200 yuan/tonne from last week. Shandong province restricted around 30% of coke production.
