Iron ore futures were closed on China’s Ching Ming holidays, despite upticks in steel prices due to stringent inspection checks.
During the market inactivity, Tangshan billet prices got much market attention, as it rose for a total of RMB 220 since the start of month to RMB 5,020/mt as of Apr 5.
The price upticks were linked to widespread inspection checks that are expected to conduct across eight Chinese provinces by early April.
Cyclone threat off Pilbara coast
Cyclone threats loomed over Western Australian coast as a tropical cyclone might develop to Category Three by mid-week, potentially affecting shipping operations off Pilbara coast.
According to Australia’s Bureau of Meteorology, Tropical Cyclone Seroja which formed off Timor, Indonesia is predicted to move southward toward west Pilbara by Thursday, Apr 8, and might intensify with strong winds moving nearly at 100km/hours.
So far, no western Australian ports had issued alerts in vessel clearing in preparation for the tropical low development as the slow-moving storm is expected to stay offshore far enough to be a threat till much later in the week.
More preference for high grade fines
Most Chinese mills had increased the ratio of high-grade fines in their blast furnace blends, amid strong steel margins.
As such, Carajas fines were favored by end-users as the higher grade materials improved blast furnace efficiency and complied with the stricter sintering regulations.
Meanwhile, low grade fines like Yandi fines were less popular among mills, except for Fortescue Blend Fines, due to its higher iron ore content in comparison to other low-grade fines.