Tight supply, strong demand send prices for iron ore pellets, concentrate higher

Prices for seaborne iron ore pellet increased again in the week ended Friday January 8 amid a sustained tightness in supply while those for concentrate also strengthened on a recovery in demand, sources told Fastmarkets.

Fastmarkets iron ore indices
65% Fe blast furnace pellet, cfr Qingdao: $218.04 per tonne, up $2.93 per tonne.
66% Fe concentrate, cfr Qingdao: $185.86 per tonne, up $8.74 per tonne.
Key drivers
Pellet supply remained tight during the week, which gave support to prices, sources said.
A trading source in Singapore said that the slowdown of cargoes from India to China sent prices for Indian pellets well above $200 per tonne during the week.
Domestic demand for pellets in India has been very strong, which results in suppliers snubbing bids of under $200 per tonne on cfr China, he added.
A trading source in southern China said that demand for pellets in China was still strong during the week, which led to another decrease of port inventory levels of the steelmaking raw material, which contributed to the price increases.

An analyst in Shanghai said...

Published

Zihao Yu

January 11, 2021

07:24 GMT

Singapore