Q4 iron ore DR pellet premium flat but will double in Q1 with lower Q2 correction

The premium for direct-reduced (DR) iron ore pellet for the fourth quarter of 2020 was unchanged at $24 per tonne, but it will double in the first quarter of 2021 with a possible downward correction in the second quarter of 2021, sources told Fastmarkets.

Fastmarkets’ iron ore DR-grade pellet premium to 65% Fe fines index, Middle East reference was $24 per tonne on Thursday December 31, unchanged month on month.

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 $168.18 per tonne in December, up by $31.95 per tonne from an...


Marina Shulga

December 31, 2020

16:05 GMT