Spot iron lump premium continued with its increase this week too over restocking by steel mills ahead of the Lunar New Year holidays which are to begin in early Feb’16.
In continuation with the uptrend exhibited in last 4 weeks, spot iron lump premium increased by 10% W-o-W. In this week (week 4) spot iron lump premium was assessed at USD 0.08/dry MT, CFR China unit against its assessment of USD 0.0725/dry MT, CFR China unit in week 3.
Restocking by steel mills prior to the start of Lunar New Year holidays prompted buying sentiments which resulted in short term increase in spot iron ore prices in China.
Temporary suspension at Vales’ Tubarao Port result in increase in global iron ore prices
Another reason which strengthened the prices was temporary suspension of activities at Vales’ Tubarao Port by a Brazillian court. The Turbaro Port was ordered temporary suspension over alleged pollution resulting from the activities of the Port.
As per a report of Vale the shutdown of the Tubarao Port terminals will prevent exporting approximately 0.2 MnT iron ore per day. Temporary suspension of activities at Turbaro Port has elevated the iron ore supply concerns among buyers resulting into short term rise in prices.
Pellet Premium Rise to USD 11.8/dry MT unit
Spot pellet premium for Fe 65% BF grade pellets increased by USD 1.2/dry MT unit to USD 11.8/dry MT unit, CFR China. This is the highest pellet premium recorded since end of Nov’15.
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