Spot iron lump premium has fallen further by 17% W-o-W, from USD 0.075/dry MT unit to USD 0.0625/dry MT.
Continuing the downtrend, spot iron lump premium has fallen further this weak amid weak buying from Chinese steel mills. Spot lump premium which stood at USD 0.075/dry MT unit last week has fallen to USD 0.0625/dry MT unit this week. Thus, registering a fall of 17% W-o-W.
Falling lump premium will make imported iron ore offers to India further cost-effective. Since Apr’15, lump premium has witnessed a decline of 38%.
Spot ore pellet premium fall by 12% W-o-W
Seaborne iron pellet premium imported to China declined further this week. It has fallen to USD 14.5/dry MT, CFR China for Fe 65% grade pellets. In order to cut production costs steel mills have restrained themselves from using pellets. Mills with their own pelletization plants are seen preferring concentrate ore instead of pellet.
Buyers are of the view that pellet buying might improve if there is further drop in pellet premium and reaches at USD 11-12/ dry MT CFR China.
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