Seaborne prices for iron ore pellets rise further on growing demand

Seaborne iron ore pellets outperformed concentrate in the week ended Friday September 11, with prices for the former benefiting from the support of steelmaking restrictions in China and lower supply, sources told Fastmarkets.

Fastmarkets iron ore indices
66% Fe concentrate, cfr Qingdao: $137.73 per tonne, up $0.76 per tonne
65% Fe blast furnace pellet, cfr Qingdao: $146.60 per tonne, up $3.53 per tonne
Key drivers
Market participants said that while demand for concentrate and pellets from Chinese mills continued to recover, prices for the latter had risen more rapidly in comparison due to lower inventory levels at Chinese ports and sintering restrictions in China’s steelmaking hub of Tangshan.
A trading source in Shanghai said that ongoing sintering restrictions had pushed up demand for pellet recently. As a result, port inventories of pellet dropped significantly during the week.
This, coupled with low seaborne supply, gave pellet prices a boost.

The source said the concentrate segment had a mixed performance, with Minas Rio being traded at a premium due to a lack of low-silica products in the market, and Ukrainian...


Zihao Yu

September 14, 2020

06:35 GMT