The supply of Carajas fines to Chinese steel mills has been lower than expected in 2021, and this situation could continue to worsen in the second quarter, sources said.
Furthermore, sintering restrictions - implemented in northern China since autumn for the annual heating season, to lower emissions - are not expected to be eased anytime soon due to the upcoming “twin sessions” - the annual meetings of China’s policymakers in early March.
“With the approach of the annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference, local authorities such as those in Tangshan could continue to restrict steelmaking processes and limit production.
“As such, demand for high-grade iron ore could continue to support their prices and sustain their gap with the mid-grade segment,” a trader in Beijing said.
The spread between Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines and that for iron ore...