Chinese steel mills agreed to pay more for domestic iron ore concentrates over June 15-19 amid low stocks at their plants, with the price rising by Yuan 10-40/tonne ($1.4-5.7/t) on week, according to Mysteel’s weekly survey. Concentrate prices remained competitive compared with prices of imported iron ore, Mysteel Global learned.
Last week, although the market for imported iron ore softened slightly, ore prices still hovered at around 10-month highs, Mysteel Global noted. In any case, even after the mills lifted their buying prices, domestic concentrates remained slightly cheaper, a survey respondent added.
For example, the price for 61.5% grade PB fines at Caofeidian port in Tangshan, North China’s Hebei province, reached Yuan 785/wmt FOT as of June 19, or equivalent to Yuan 872.2/dmt, down by Yuan 5/wmt on week, Mysteel’s database showed.
Meanwhile, the buying price bid by a Tangshan mill for 66% concentrate at the same time was just Yuan 910/dmt including the delivery to the mill, albeit up by Yuan 40/dmt on week. The two prices include 13% VAT.
Thus, over June 15-19 mills in most regions nationwide including those in Tangshan agreed to raise their procurement prices when they saw their local miners lift offering prices of concentrates by Yuan 10-45/t, the survey said.
Moreover, steelmakers also raised their buying prices intending to replenish their low concentrates stocks, the survey respondent said. Supplies from miners were still tight, even though concs production has steadily increased.
Stocks of domestic iron ore sintering concentrates at the 64 Chinese steelmakers totalled 635,800 tonnes over June 4-17, down another 0.3% on fortnight and 34.3% lower than a year ago, Mysteel’s latest bi-weekly survey showed. On the other hand, daily consumption of the sintering concentrates at the mills rose to 55,800 t/day as of June 17, up by 1.3% over the two weeks though still 26.8% lower one year.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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