A total of 1.26 million mt of iron ores was traded for the week ended Jan 7, down 8.36% on-week despite better restocking activities and healthy steel margins.
According to trade sources, there was some easing of output restrictions for mills that comply with environmental regulations, which increase steel productions.
During the week, the trades volume of Jimblebar fines accounted the largest market share at 29%, then followed by Yandi fines at 19%, and then Mac fines at 14%.
Growing interests for high grade fines as margins improve
There was growing demand for high grade fines like Carajas fines among mills as they snapped up cargoes as soon as they arrived in ports, while mainstream medium grade fines continued to attract buying interests on improving margins.
According to trade sources, the rebar margins were heard to maintain around at RMB 455/wmt, while HRC margins were estimated at RMB 565/wmt, similar to late December period.
In the meantime, many Chinese mills were heard to be low in inventory, which made more rooms for iron ore procurement for the restocking activities before Spring festival.
Lump demand picks up amid restocking activities
Lump demand was high for both seaborne and portside market, especially for lump products like Newman Blend lump.
As lump products were used as direct feed in view of stricter sintering restriction before the Winter Olympics.
In the meantime, lump premiums were also supported by wet weather occurring in Australia with cyclone threat that limited market offering of lump cargoes.
