A total of 2.03 million mt of iron ores was exchanged hands for the week ended Sep 11, up 7.69% as compared to the 1.89 million mt recorded last week.
Pilbara Blend fines (PBF) accounted almost half of the transacted trades for this week at 49%, lesser than the 57% of market share seen in last week.
This was later followed by BRBF at 16.75%, and then Yandi fines at 8.87% for the week ended at Sep 11.
Popularity goes back to medium grade fines again
Due to recent rally of iron ore prices, many mills with flexible blast furnaces switched to the combination of high grade fines with low grade fines as feedstocks to lower costs.
This blast furnace mix then caused prices of low grade and high grade ores to climb at a faster rate, while the prices of medium grade fines remained largely stable.
Therefore, some mills chose to switch back to medium grade fines for its relative cost effectiveness, while those mills continuing the low grade and high grade ores blending were heard to be seeking for Indian low grade fines to lower costs.
Better demand for lump and pellet
Iron ore lump and pellet prices are expected to receive more support due to strict sintering cut in Tangshan and preparation for the upcoming winter output restriction.
However, the price upticks were offset by high port stocks for lump, though it was heard that there was huge drawdown of lump stockpiles at river ports due to higher consumption rate.
For pellet wise, the Chinese end-users may be keen to import from Indian sources. However, it may be more difficult to import the Indian pellets over near term.
As the Indian producers’ prefer to sell pellets in their own domestic market, while the port congestion at Paradip port also discourage further exports of Indian pellets.
