A total of 2.79 million of iron ores was traded for the week ended Oct 15, a significant rise from previous week due to effect of the weeklong holidays in China.
Apparently, restocking activities picked up as Chinese participants returned from holidays, while some trade participants were attracted by reasonable low pricing after much price corrections.
During the week, the trades volume of PBF accounted the largest market share at 27%, then followed by Carajas fines at 25%, and BRBF at 12%.
Higher demand for medium and high-grade fines
The competitive pricing of Jimblebar fines, Mac fines and Yandi fines and their discounts made them firm favorites among end users, as steel margins maintained at healthy levels.
In the meantime, mills were seeking for high grade fines like Carajas fines and BRBF as well , due to their cost effectiveness, though the supply of Carajas fines remained tight and might boost further upticks in prices.
The renewed restocking activities were due to improvement in the steel production as more steel plants restarted in Jiangsu province, though market were concerned that the power crunch might limit operating rates.
Mixed market outlook for lump demand
Market outlooks were mixed for lump as some trade participants expected lump premiums to improve due to winter sintering restriction.
However, some trade participants cited that the high coke prices might limit further upticks in lump premiums.
Meanwhile, some trade sources foresaw better demand for lump in view of limited seaborne pellet supply, while increased lump usage might improve margins for steel mills.
