Ferrous Market
– Australia Pilbara Ports Authority sent a cyclone notice late last week, the cyclone passed by the Hedland port area, which was cleared during weekends. However the cyclone has left the coastal area on Monday, detail impact on delivery to be announced.
– FMG SSF discount expanded to 11% from 10% in January. FMG BF unchanged at 8% compared with last month.
– Mineral Resources Q4 iron ore production 5.099 million tonnes, up 912,000 tonnes(21.8%) from Q3, up 1.77 million tonnes(53%) y-o-y.
– Canada miner Champion Iron Q4 report indicated the company produced 1.92 million tonnes of high grade iron ore, upo 4% y-o-y. Sales at Q4 1.89 million tonnes, down 1.6% y-o-y.
– IRC K&S iron ore production 2.75 million tonnes in the year 2020, up 6.7% y-o-y. Sales 2.577 million tonnes, up 4.6% y-o-y.
Macro
– U.S. Nasdaq stock index down 2.66% last Friday, created the biggest single day correction from Dec 3rd, 2020.
– China Caixin Jan Manufacture PMI 51.5, last 53, est. 52.7.
SGX Iron Ore 62% Futures& Options Open Interest(Jan 29th)
– Futures 69,721,400 tonnes(increase 18,080,200 tonnes)
– Options 41,048,500 tonnes(increase 9,859,700tonnes)
Verdict
– Short-term bearish.
