Fortescue Metals Group – world’s 4th largest iron ore producer has increased sub-grade iron ore discount for SSF (super special fines) for Dec’19. SteelMint has learned from the market participants that FMG discount for SSF low-grade fines for the month of Dec’19 to 15% from 12%.
Monthly average global iron ore fines (Fe 62%) decreased by 4% in this month compared to last month’s prices. Monthly average stood at USD 89/MT, CFR China in Oct against last month at USD 93/MT, CFR China.
Last week from India also low-grade iron ore fines (Fe 58/57%) deals were from India to China around USD 55-57/MT, CFR levels.
As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports dropped to 129.5 MnT last week as against 134.1 MnT a month back.
FMG depicted fall in shipments in Q3 CY19 to 42.2 MnT. The shipments recorded a drop of 9% Q-o-Q as against 46.6 MnT in the previous quarter. On yearly basis, the shipment was marginally up compared to 40.2 MnT in the same time frame last year.
Chinese mills in eastern China are learned to have shifted towards more high-grade iron ore considering the steel margins.
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