Seaborne iron ore price were stable recently.
Front-month July 62% Fe derivatives were up $0.30/dmt on the day at $198.50/dmt.
Premiums for medium-grade fines remained firm as procurement interest held steady despite a drop in steel margins. While interest has picked up for low-grade fines, recent market volatility also had mills
leaving their blend unchanged as well.
“Our blend is still stable and low-grade fines usage is still little,” said a steel mill source. “Unless there is indication that change in the market is for a longer period,” the source continued.
A spot tender for 100,000 mt of 57.9% Fe, 4.9% SiO2, 3.6% Al2O3 Australian Supplementary Product (SP10) Fines were heard sold by Rio Tinto at a discount of around 16% over the July average of IODEX CFR
China, on FOB basis, for loading June 25-July 4.
At Chinese portside, IOPEX North China was assessed at Yuan 1449/wmt FOT June 2, up Yuan 5/wmt from June 1, or at $214.88/dmt on an import parity basis. IOPEX East China was assessed at Yuan
1457/wmt FOT June 2, up Yuan 18/wmt from June 1, or at $216.13/dmt on an import parity basis.
Seaborne lump premium gained support as sources saw limited supply of mainstream lump and as secondary prices remained firm. However, market sources cautioned decreased demand as the rainy
season draws closer.
During the Platts Market on Close assessment process, Forchi Holding Ptd Ltd was bidding a 70,000 - 100,000 mt cargo of 63%-Fe Australian Newman Blend lump at a premium of 54.6 cents/dmtu over
July average of Platts IODEX CFR Qingdao, loadport laycan July 1-15.Platts assessed the spot lump premium at 56 cents/dmtu on June 2, up 4 cents/dmtu from June 1.
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