Spot iron lump premium witnessed a gradual decrease this week and was assessed at USD 0.05/ dry MT unit.
Week 48 noticed a slight fall of 12% W-o-W in spot lump premium. This week spot lump premium for Fe 62% was assessed at USD 0.05/dry MT unit against last week when it was seen at USD 0.057/dry MT unit.
Falling lump premium have turned imported lump cargoes to China further cheaper. Imported lump cargoes are still a preference over imported pellet cargoes. Also ample availability of lump cargoes in China is also another reason for its preference over pellets. China has imported 119 MnT lump in the time span of Jan’15-Sept’15.
Chinese steel prices have hit record lows which have resulted in mills closure. Battling with softening steel prices and negative margins many mills are showing interest in buying medium grade cargoes.
Apart from this, mills have resisted themselves from booking larger capesize vessels from seaborne market because by the time the shipment would arrive, spot iron ore prices would have fallen further. Thus, medium sized mills are preferring to buy smaller parcels from available port stock.
Spot pellet premium fell by 36% in Nov’15
Pellet premium contiued to drop this month. Spot pellet premium has fallen sharply by 36% since beginning of Oct’15.
Spot pellet premium was last seen at USD 12.25/dry MT , CFR China (as on 18 Nov’15) against USD 19.25/dry MT, CFR China in beginning of Oct’15.
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