Spot iron lump premium has moved up marginally this week and was assessed at USD 0.05/dry MT unit. Thus the lump premium has noticed a gain of about 18% against last week. Last week the spot iron lump premium was seen at USD 0.0425/dry MT unit.
BHP Billiton, one of the largest iron ore miners in the world sold two parcels of lump cargoes of around 80,000 MT each for Jan’16 deliveries. Spot lump premium for both the trades normalized to USD 0.05/dry MT unit and USD 0.0496/dry MT respectively on a CFR China basis.
Lump gets a seasonal advantage over fines in the winter season especially in north China. Thus lump having low moisture content and higher Fe content are a preferred choice over fines. Also, the former has less silica and alumina content thus creates less pollution than fines.
However, increased supply of lump cargoes and weak steel demand has countered the effect of increased demand for high grade lump and pellets in this fiscal.
Spot Pellet Premium Remains Stable at USD 10.6/dry MT unit
Spot iron pellet premium remain unchanged this week. The spot pellet premium for Fe 65% BF grade pellets was assessed at USD 10.6/ dry MT unit this week.
Leave a Reply