Spot iron lump premium has moved up to USD 0.0725/dry MT unit this week. Pellet premium remains stable at USD 10.6/dry MT unit.
Amid environmental concerns, spot iron lump premium has increased further. Spot lump premium which was assessed at USD 0.064/dry MT unit last week has moved up further this week to USD 0.0725/dry MT unit for Fe 62%.
Spot lump premium edged further on grounds of replenishment of stocks and stricter environmental concerns. Mills are trying to cut production cost but are forced to use more of lump so as to reduce dependence on sintering fines which is a major source of pollution.
Some participants believe that seasonal advantage may continue to support spot iron lump premium in the short term but on the other side other participants expect that over availability of cheaper lump cargoes at ports, spot iron lump premium may not remain high for long.
Spot pellet premium remains stable. Pellet premium was assessed at USD 10.6/dry MT for Fe 65% BF grade pellets. There was not much change in the inventory levels of pellet as the market was quiet and less buying interest.
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