Spot iron lump premium fell to its lowest level since beginning of FY16 and is at USD 0.0425/MT, CFR China.
Spot iron lump premium for Fe 62% was assessed at USD 0.0525/MT, CFR China last week (i.e. Week 49).
Amid struggling steel demand in China and increasing stock of cheap lump cargoes, spot lump premium fell by 19% this week. In week 50 spot lump premium is assessed at USD 0.0425/MT, CFR China.
This is the lowest level of spot lump premium in this fiscal. Prior to this in the beginning of Nov’15 it had touched USD 0.0475/MT, CFR China and then rebounded back.
Bearish sentiments in China’s steel market has compelled steel makers to shut their plants or go for production cut. This has led to increasing stock of key steel making raw material-iron ore. Iron ore stock at Chinese major ports have piled up to 91.3 MnT ( as on 04 Dec’15) highest since May’15.
In first ten months of 2015 (i.e. Jan-Oct’15) China has imported 132.42 MnT lump.
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