What’re Factors behind Surging Pellet Premiums in May? Will Price Gain Be Continuing? SMM Reports

Published: Jul 18, 2017 15:20 (GMT+8)
Pellet premiums surged in May, and what are major factors behind the surge?

SHANGHAI, Jul. 18 (SMM) – Pellet premiums surged in May, and what are major factors behind the surge?

Falling supply and demand increase served as the two major driving forces, SMM concludes. 

China Ports to See Higher Arrivals of Iron Ore for 4th Consecutive Period, SMM Reports

China imported 930,000 tonnes of pellets in May, down 47.75 per cent on a monthly basis, and down 20.45 per cent on a yearly basis. Domestic steel mills, on the other hand, rushed to buy high-quality resources to pursue higher profits, growing the pellet using ratio at mills. The big rise in lump premiums also persuaded some mills to shift to pellet market. 

How Will Iron Ore Perform in H2 After Bull Run in H1 2017? SMM Reports

Moreover, tight supply of domestic concentrate also grew demand for imported pellet. SMM survey finds that utilization rates at domestic iron mines, which averaged around 51 per cent from January to June, dropped to a first-half’s low in May. 

In July, supply of domestic pellet is expected to grow with production resumption at some large pellet producers, which shut down in June for unit maintenance. Hence, SMM expects pellet premiums to fall back slightly. 

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
China’s Semi-Steel Tire Exports Down 0.92% Cumulative YoY Jan-Aug 2026
Oct 08, 2026 16:26 (GMT+8)
China’s Semi-Steel Tire Exports Down 0.92% Cumulative YoY Jan-Aug 2026
Read More
China’s Semi-Steel Tire Exports Down 0.92% Cumulative YoY Jan-Aug 2026
China’s Semi-Steel Tire Exports Down 0.92% Cumulative YoY Jan-Aug 2026
[SMM Flash] According to customs data, in August 2026, China exported 29.696 million semi-steel tires (including retreaded tires), with cumulative exports from January to August totaling 235.7676 million units, down 0.92% YoY.
Oct 08, 2026 16:26 (GMT+8)
Heyuan Issues Strict Regulations and Fines for Unauthorized Waste Lead-Acid Battery Management
Sep 28, 2026 17:34 (GMT+8)
Heyuan Issues Strict Regulations and Fines for Unauthorized Waste Lead-Acid Battery Management
Read More
Heyuan Issues Strict Regulations and Fines for Unauthorized Waste Lead-Acid Battery Management
Heyuan Issues Strict Regulations and Fines for Unauthorized Waste Lead-Acid Battery Management
[Waste Lead-Acid Battery Market Update] Recently, the Heyuan Municipal Ecology and Environment Bureau issued the "Notice on Regulating the Management of Waste Lead-Acid Batteries." According to the Ecological Environment Code of the People's Republic of China, enterprises and public institutions that engage in the collection and storage of waste without a permit may be fined 200,000-1 million yuan; those that engage in utilization and disposal operations without a permit may be fined 1-5 million yuan and ordered to suspend operations or shut down, with responsible persons fined 100,000-1 million yuan; if the act constitutes a crime, criminal liability shall be pursued in accordance with the law.
Sep 28, 2026 17:34 (GMT+8)
"Guangzhou Tightens E-bike Waste Lead-Acid Battery Management, Clarifies Hazardous Waste Rules"
Sep 28, 2026 17:33 (GMT+8)
"Guangzhou Tightens E-bike Waste Lead-Acid Battery Management, Clarifies Hazardous Waste Rules"
Read More
"Guangzhou Tightens E-bike Waste Lead-Acid Battery Management, Clarifies Hazardous Waste Rules"
"Guangzhou Tightens E-bike Waste Lead-Acid Battery Management, Clarifies Hazardous Waste Rules"
[Market Dynamics of Waste Lead-Acid Batteries from E-bikes] Recently, the Guangzhou Municipal Ecology and Environment Bureau issued a notice on the key points for environmental management of waste lead-acid batteries from e-bikes in Guangzhou. The document clarifies that waste lead-acid batteries are hazardous waste (HW31, 900-52), and scrap batteries generated from store recycling, trade-in, and repair must be transferred to licensed units. Units holding a hazardous waste collection permit (including 900-52) are exempt from electronic transfer manifests during the collection process under the centralized collection pilot program.
Sep 28, 2026 17:33 (GMT+8)
What’re Factors behind Surging Pellet Premiums in May? Will Price Gain Be Continuing? SMM Reports - Shanghai Metals Market (SMM)