A total of 0.86 million mt of iron ores was traded for the week ended May 21, amid cautious purchases from trade participants as Chinese authority clamped down on market speculations over recent price rally.
Thus, the steel prices followed a downward trajectory as market participants expected Chinese policymakers to impose further market intervention measures to curb prices.
Nevertheless, the trades volume of PBF accounted the largest market share at 39% during the week, then followed by Carajas fines at 20% and finally Jimblebar fines at 19% market share.
Tighter supplies for mainstream fines
The supply tightness for mainstream fines like PBF remained in the spot market, while the lower iron ore port inventory among Chinese ports further aggravated the shortage.
Besides PBF, other Australian ores like Mac fines and Newman fines were on limited availability as well, which supported record high premiums for these fines.
However, trade participants expected the supply tightness to ease later in June based on historical patterns as the favorable summer weather will ensure more shipments from the Australian and Brazilian miners.
Mixed outlook for lump demand
According to trade sources, there was some firm demand for lump premium in southwest China due to adverse weather that disrupted logistics and resulted tight supply among river ports.
However, some trade participants did not expect the uptick to last, as they expected lower premium for lump due to the availability of other cost-competitive alternative and easing of tight Australian lump supply in coming month.
Meanwhile, other market participants pointed to upcoming rainy season in China, which typically reduced steel demand, especially among the southern provinces.
