Seaborne iron ore pellet price supported by sintering restrictions in Tangshan, soaring coke prices

Seaborne iron ore pellet prices were well supported in the week to Friday October 23, amid the continuing sintering restrictions, which were imposed in China's steelmaking hub of Tangshan on October 1, sources told Fastmarkets.

Fastmarkets iron ore indices
66% Fe concentrate, cfr Qingdao: $130.72 per tonne, up $0.08 per tonne.
65% Fe blast furnace pellet, cfr Qingdao: $148.97 per tonne, up $1.65 per tonne.
Key drivers
Pollution control measures imposed on steelmakers in Tangshan have limited consumption of iron ore fines, prompting mills to switch to direct-charge raw materials, such as iron ore pellet and lump, a buyer source in Beijing said.
The halting of imports of Australian thermal and coking coal in mid-October, led to higher prices for Chinese domestic coal, which in turn prompted steel mills to consume more direct-charge materials because the use lesser amounts of coke.

Offers for seaborne iron ore pellet cargoes increased in the week to October...

Published

Alex Theo

October 26, 2020

09:05 GMT

Singapore