A total of 1.13 million mt of iron ores was traded for the week ended Jan 14, down 10.32% on-week, as restocking activities slowed down.
As most of the mills were heard to complete their pre-Lunar New Year procurement, though some market participants expected some purchases for smaller lots.
During the week, the trades volume of Mac fines accounted the largest market share at 26%, then followed by Jimblebar fines at 22%, and then PBF at 21%.
Medium grade fines remain popular among mills
Chinese mills preferred medium grade fines due to their competitive prices and specification for their blast furnace mix.
For instance, Jimblebar fines were favored by Chinese mills for its high phosphorus contents level among other products, while Yandi fines were preferred for its low alumina properties.
Meanwhile, PBF was also gaining popularity, but mills preferred to purchase them cheaper from the portside rather than on the secondary market, according to trade sources.
On the other hand, the supply of Carajas fines and BRBF are estimated to be limited in the seaborne market due to the heavy rains in Brazil.
Lump demand extends bullish run
Lump demand continued to rise on higher domestic coke prices, though some trade participants believed that the lump demand had peaked, and mills are unwillingly to absorb the high prices.
Hence, some mills might switch to other cheaper alternatives like buying more fines instead, though market expected more sintering restrictions from Beijing policymakers with the upcoming Winter Olympics.
Therefore, some trade sources predicted the demand for direct feed raw material to increase over the coming weeks with steady stream of purchases from end-users.
