A total of 1.63 million mt of iron ores was traded for the week ended Apr 23, up 33% on-week, as iron ore prices moved to decade-high levels on good steel margins.
During the week, there was plan for production curb in another Chinese steelmaking hub at Handan, with the elimination of obsolete output facilities. Hence, it was estimated that the capacity utilization rates of local blast furnaces would be reduced to 63-93% from April 21 to June 30.
Meanwhile, the trades volume of PBF accounted the largest market share at 48%, then followed by Yandi fines at 17% and finally BRBF at 10% for the third place.
Mainstream fines prefer for cost efficiency
Most of the Chinese participants continued to seek for medium grade fines such as Mac fines, Newman High Grade Fines and PBF for sintering blends. High grade fines like BRBF and Carajas fines were popular among mills as well for their cost efficiency.
Hence, the lower grade products were less sought after by mills amid high steel margins, which resulted in steepening discounts levels of Jimblebar Fines.
However, trade sources stated that there were more enquiries for the low grade 57% Indian fines due to their price competitiveness.
Not so hot pre-Labour Day holiday restocking
Chinese mills were reportedly restocking ahead of the week-long Chinese public holidays in early May that supported further price upticks.
However, some trade sources stated that the restocking activities for upcoming Labour Day holidays had been slow as compared to previous years due to high prices.
As such, there was less speculative restocking, and most mills were heard to be purchasing on need-basis instead.
