Spot iron lump premium noticed a minor increase this week. It stood at USD 0.0525/DMT, CFR China this week for Fe 62%. Last week spot lump premium stood at USD 0.05/DMT, CFR China.
Slight pick up in lump buying led spot lump premium to edge up this week. Few Chinese steel makers anticipate that declining lump premium might find support because of below mentioned reaons-
Lump is still being preferred over pellets as the former is cost effective. Also owing to strict environmental regulations, steel mills in northern province of China are bound to maintain some quantity of high grade material with them.
However, on the other hand few steel makers remain skeptical over any significant improvement in spot lump premium looking at the increasing supply of lump.
Spot Pellet Premium Drops by USD 0.05/MT W-o-W
Demand for pellet continued to soften this week with steel mills losing interest from expensive pellets.
Spot blast furnace pellet premium has fallen further this week to USD 11/MT, CFR China for Fe 65% pellets. Last week pellet premium was assessed at USD 11.5/MT, CFR China.
Spot pellet premium has declined by 43% since beginning of Oct’15.
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