A total of 710,000 mt of iron ores was traded for the week ended Dec 17, up weekly, despite approaching the holidays season.
The improving margins and market optimism over steel demand in the new year had lifted the market sentiments, though some trade participants expected some sintering curbs ahead of the Winter Olympics.
During the week, the trades volume of Mac fines accounted the largest market share at 52%, then followed by BRBF at 48%.
Buyers’ interest stays among discount medium grade fines
Many mills still preferred to procure discounted medium grade fines like Mac fines and Jimblebar fines in the seaborne market.
However, the demand for seaborne medium grade Pilbara Blend fines remained soft, as buyers preferred to purchase them from portside instead due to high buildup of stocks of PBF at the docks.
There was growing interests for low grade fines like SSF and high-grade fines like Carajas fines, due to better import margins, as some mills were heard to be using low-high grade fines for blast furnace mix.
Mixed outlook for lump demand
Lump demand posed a mixed outlook, as mills were heard to increase lump usage, though the demand of seaborne lump remained poor due to negative import margins.
In the meantime, the higher lump stocks put pressures on lump premium, while some buyers were heard to seek for alternative among portside stocks.
Moreover, the ongoing production restrictions and sintering curbs before the Winter Olympics might hurt lump demand.
