Chinese mill margins supporting seaborne iron ore pellet, concentrate prices

Seaborne iron ore pellet and concentrate prices rose further in the week ended Friday April 30, with healthy mill margins stimulating steelmakers’ appetite for high-grade steelmaking raw materials.

Fastmarkets iron ore indices
66% Fe concentrate, cfr Qingdao: $227.01 per tonne, up $7.88 per tonne.
65% Fe blast furnace pellet, cfr Qingdao: $262.04 per tonne, up $9.66 per tonne
Key drivers
High prices for finished steel in China - likely the result of the country’s longer-term goal to cut capacity - have led to Chinese steelmakers enjoying very healthy margins, market sources said.
In addition, several sources said ongoing measures to cut emissions in the country’s Tangshan region - its biggest steel production hub - were bolstering demand for high-grade iron ore.
A massive resurgence of Covid-19 in India has sparked supply jitters over whether a lockdown in the South Asian country would affect the transportation of raw materials abroad.

A trading source in southern China said that...

Published

Alex Theo

May 03, 2021

09:53 GMT

Singapore