Spot pellet premium has witnessed a downfall of USD 4/MT in past 2 weeks. In week 39, spot pellet premium for BF grade Fe 65% pellets is assessed at USD 30.5/MT. However, in week 38, the premium moved down by USD 3/MT and was assessed at USD 31.5/MT.
Currently, demand for seaborne iron ore is denting because of rising coking coal prices and squeezing steel margins. As coking coal prices have hit 4-year high at USD 214/MT, FoB Australia, few mills and traders are more concerned about restocking the coking coal and met coke due to volatile and global coal supply shortage in the market.
Limited high-grade iron ore trade activities and availability of cheap port stocks for iron ore also gave relief to Chinese buyers. The buyers are not in a hurry to procure high-grade iron ore thereby allowing spot pellet premium to move down further.
Pellet inventories at major Chinese ports are at 3 MnT in Week 39, down by 6.2% as it was 3.2 MnT in Week 38.
Spot Lump premium stable at USD 0.186/DMT
In week 39, spot lump premium is assessed at USD 0.186/DMT. Lump premium remained stable when compared with week 38 due to limited trade activities.
Seaborne lump inventories at Chinese major ports were recorded at 12.70 MnT in week 39, up by 1.6% as it was 12.50 MnT in Week 38.
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