China, the world’s largest iron ore consumer produced around 115.49 MnT ROM (Run-of-mine) in Aug’17. Crude iron ore production was increased by 1% M-o-M even when the steelmaking raw material prices have sustained for a while.
There was a slowdown of 0.34% Y-o-Y compared with the month of Aug’16 where the production was 115.1 MnT then.
Global iron ore prices were up last month. In Aug’17, the monthly average iron ore prices for Fe 62% Australian fines rose by USD 9/MT and were registered at USD 76/MT, CFR China against USD 67/MT, CFR China in Jul’17.
Meanwhile, Chinese iron ore imports were up by 3% in Aug ’17 at 88.66 MnT iron ore against 86.25 MnT in Jul’17.
The country imported 714.41 MnT iron ore in the first eight months of 2017, which was higher by 7% Y-o-Y.
The country imported 669.7 MnT iron ore during the same period in 2016. It is believed that to curb the pollution a considerable cut in the use of Sinter, along with minimized feed of low grade ore is noticed in China and made a way for the transition to high grade lump and pellets by Chinese steel mills.
The preference for the pellets and scrap over iron ore by the Chinese steel manufactures is driving the global market currently and the growing global pellet premium that stands at USD 49/MT, CFR China with a jump of 18% W-o-W against USD 41.5/MT, CFR China is being connected to the momentum in the Indian export deals that are completed recently.
The upward movement in India pellet export market had the repercussions on global steelmaking raw material market pushing the spot pellet premium up.
Source Steel Mint powered by Keyvan Jafari Tehrani (JTC)
