In Week 30, spot lump premium is assessed at USD 0.174/DMT, CFR China. Lump premium moved up by USD 0.001/DMT W-o-W as it was last assessed at USD 0.173/DMT, CFR China in Week 29.
Strong demand prevailed for lump among Chinese steel mills. In addition, lump remained more competitive than pellet and concentrate as they were bit expensive than lumps. Steel margins were also higher than before.
Alongside, Tangshan restriction on sinter usage and flood in Northern China has also attributed to support lump premium to moved up further. Chinese steel mills are using either lump and fines as their feedstock as they cannot use sinter fines, driving premiums to move up.
Seaborne lump inventories at Chinese major ports were recorded at 11.65 MnT in week 30, up by 2.6% as it was 11.3 MnT in Week 29.
Pellet premium also moved up by USD 1.5/DMT, CFR China
In week 30, pellet premium for Fe 65% BF grade pellets is assessed at USD 25.5/DMT, CFR China. Pellet premium sharply moved up by USD 1.5/DMT, CFR China in a week time. In Week 29, pellet premium was at USD 24.5/DMT, CFR China.
Pellet premium continuous to move up since last 3 weeks as Chinese steelmakers were interested in buying direct feedstock creating strong demand for pellets.
Pellet inventory at Chinese major ports is at 4.8 MnT in Week 30, down by 4% as it was 5.0 MnT in Week 29. Seaborne pellet inventories are decreasing continuously. In week 28, inventories were recorded at 5.2 MnT.
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