Spot iron lump premium in week 14 (28 Mar’16-03 Apr’16) noticed a marginal improvement against previous week. Premium was assessed at 0.166/DMT, CFR China.
In week 13, lump premium was seen at USD 0.16/DMT, CFR China hence a slight increase of 4% W-o-W.
Lump premium on an uptrend in 2016
It is to be noted that that spot lump premium has witnessed uptrend since beginning of 2016. Towards the beginning of 2016 it was at USD 0.0625/DMT, CFR China which is now at USD 0.166/DMT, CFR China.
Spot pellet premium for Fe 65% BF grade pellets remained unchanged at USD 16.5/DMT, CFR China.
China’s PMI showed signs of recovery in Mar’16
Various surveys reported that manufacturing activity in China showed signs of improvement in Mar’16. The Caixin Manufacturing PMI in China increased and stood at 49.7 in Mar’16 against its previous months assessment of 48 in Apr’16.
According to National Bureau of Statistics, China’s official Purchasing Managers Index index (PMI) also rose to 50.2 in Mar’16 against 49 in Feb’16.
Increase in China’s PMI index has instilled confidence in market and people are hopeful that improvement in manufacturing sector will increase the demand for steel and successively for iron ore.
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