DR pellet premium at bottom in Q4 as demand recovers, sources say

The premium for direct-reduced (DR) iron ore pellet has gone down again for the fourth quarter of 2020, although any further decline would be doubtful because demand has been recovering, Fastmarkets has heard.

Fastmarkets’ iron ore DR-grade pellet premium to 65% Fe fines index, Middle East reference, was $24 per tonne on Wednesday September 30, down from $27 per tonne on September 1.
Fastmarkets’ index for iron ore, 65% Fe Brazil-origin fines, cfr Qingdao, which has been used as the base for DR pellet premium contracts since 2019, averaged $136.50 per tonne in September. That was up by $5.06 per tonne from an average of $131.44 per tonne in August.

But the...


Marina Shulga

October 01, 2020

15:50 GMT