Price Difference Between High And Medium-Grade Imported Iron Ore To Narrow In June, But Could Expand Between Medium And Low-Grade Ore

SHANGHAI, Jun 14 (SMM) – In early June, most steel mills in Tangshan and Qinhuangdao were required to curtail sinter production for environmental protection and some blast furnaces were shut down for maintenance. End-use demand will weaken further. Pig iron production may drop if steel mills suffer losses. The fundamentals of iron ore market are bearish, putting downward pressure on iron ore prices. Some steel mills will still favour low and medium-grade ore for cost reduction. Therefore, prices of high-grade ore may fall the most. It is expected that the price difference between high and medium-grade ore will narrow in June. Considering the bigger discounts for low-grade super special fines in June, the price difference between medium and low-grade ore will expand.