In week 26, spot iron lump premium moved up by 3% W-o-W. It was assessed at USD 0.165/DMT, CFR China against its last week’s (week 25) assessment of USD 0.16/DMT, CFR China.
Strong demand pushed spot lump premium northwards. Despite the restriction on sinter usage imposed in the steel mills located in the city of Tangshan ended on 19 Jun’16 there was demand seen for high grade lump and pellet.
As per reports of market participants, the demand for high grade lump and pellet will be supported by Tangshan International Horticulture Exposition which will finish in Oct’16.
Pellet premium up to USD 22/DMT, CFR China
Thin port supply and comparatively better demand of pellets pushed up pellet premium. Pellet premium in week 26 was recorded at USD 22/DMT, CFR China against USD 21.5/DMT, CFR China assessed last week.
Pellet inventory at China major ports fell from 5.84 MnT in week 25 to 5.78 MnT in week 26.
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