A total of 980,000 mt of iron ores was traded for the week ended Oct 22, a significant sharp decline of 64.87% from previous week at 2.79 million mt.
Trade participants were concerned over the upcoming traditional low steel demand during winter season with market certainty variables over power crunch and sintering curbs.
During the week, the trades volume of PBF and BRBF accounted the largest market share at 18%, then followed by Carajas fines at 17%.
A return to high-low combination for better productivity
As winter dawned earlier for northeastern China, some trade participants expected more demand for high grade fines, in view of the sintering restriction during winter season.
Thus, some mills may adopt the and-low grade fines combination over the usage of medium grade fines in the blast furnace mix to achieve better cost efficiency.
Some trade sources also expected higher productivity from the higher Fe content amid the stringent steel output curbs policy that Chinese authority aimed for zero-growth target by year-end.
Lump premiums to strengthen over winter sintering period
Market outlooks were optimistic for lump demand as sintering restriction had been placed in steelmaking hubs like Tangshan and Wu An.
As lump demand usually rises during strict sintering restrictions, while the current tight supply of pellet and weakening coke prices might push lump premiums further.
Moreover, there was also growing demand for FMG lump, due to its discounts and cost effective, though some trade participants were cautious in procurement of lump, in view of the power restrictions that affected steel operations.
