A total of 0.66 million mt of iron ores was traded for the week ended Apr 9, after trade participants returned from the long weekend holidays.
Steel prices rose to multi-years high during the week amid high margins and output restrictions that extended beyond China’s steelmaking hub of Tangshan.
During the week, the trades volume of PBF accounted the largest market share at 26%, tied with trade volume of BRBF at 26%, then followed by Newman lump at 20%.
Steel margins approach the $1,000 mt level
The record-high Chinese steel prices were traced to high steel margins with flat steel margins heard to reach the RMB 1,000/mt level, according to trade sources.
With the higher margins, Chinese mills preferred to procure iron ore with higher ferrous contents and lower impurities such as Carajas fines for blast furnace efficiency.
Hence, some trade participants were heard to be taking aggressive positions for medium grade fines or higher-grade materials during May-loading cargoes in expectation of higher steel prices in near term.
High steel consumption expected in April
China’s monthly steel consumption is expected to increase further by 10% on-year in April, according to Mysteel.
This was due to various Chinese construction projects being rolled out over the next three months, amid the peak construction season.
Meanwhile, the market participants also expected more Brazilian iron ore shipments to meet the higher Chinese steel demand in April, as miners ramped out exports on better weather conditions.
Previously, Brazil exported 28.4 million mt of iron ores in March 2021, up 18.2% on-month and up 34% on-year, based on data from the country’s Ministry of Industry, Foreign Trade and Services.
