In Week 32, pellet premium for Fe 65% BF grade pellets is assessed at USD 29/DMT. Pellet premium is at all time high. In Week 31, pellet premium was assessed at USD 28.5/DMT.
Premium is continuously moving up on strong demand. As Chinese makers are opting for pellets or lumps instead of using sinter as a raw material feed, pellet premium is moving up sharply.
It should be noted that pellet premium was usually assessed at around USD 17-18/DMT last year, but now it has hit all time high and reached to a level of USD 29/MT.
Pellet inventory at Chinese major ports is at 4.20 MnT in Week 32, down by 8.6% as it was 4.60 MnT in Week 31. Seaborne pellet inventories are decreasing continuously. In week 30, inventories were recorded at 4.80 MnT.
Spot lump premium also moved up at USD 0.190/DMT
In week 32, spot lump premium is assessed at USD 0.190/DMT. Lump premium moved up by 0.005/DMT W-o-W as it was last assessed at USD 0.185/DMT in Week 31.
Prevailing strong lump demand among Chinese mills have drifted lump premium to move up. In addition, restriction on usage of sinter among Chinese mills has shifted interest of steel mills in China to go for lumps or pellets.
Seaborne lump inventories at Chinese major ports were recorded at 12.05 MnT in week 32, up by 0.8% as it was 11.95 MnT in Week 31.
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