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Price Difference Between High And Medium-Grade Iron Ore Expanded

iconMay 15, 2023 17:40
Source:SMM
The price difference between high and medium-grade ore expanded last week, while that between medium and low-grade ore narrowed. At Qingdao port, the price difference between mainstream high-grade ore (IOCJ fines) and medium-grade ore (PB fines) widened 9 yuan/mt to 93 yuan/mt, while that between mainstream medium-grade ore (PB fines) and low-grade ore (super special fines or SSF) shrank 8 yuan/mt to 135 yuan/mt. Last week, the profits of steel mills expanded slightly, and the price difference between high-grade and medium-grade ores narrowed below 84 yuan/mt.

The price difference between high and medium-grade ore expanded last week, while that between medium and low-grade ore narrowed. At Qingdao port, the price difference between mainstream high-grade ore (IOCJ fines) and medium-grade ore (PB fines) widened 9 yuan/mt to 93 yuan/mt, while that between mainstream medium-grade ore (PB fines) and low-grade ore (super special fines or SSF) shrank 8 yuan/mt to 135 yuan/mt. Last week, the profits of steel mills expanded slightly, and the price difference between high-grade and medium-grade ores narrowed below 84 yuan/mt.

Hence the cost efficiency of IOCJ fines improved, and the resulting stronger demand bolstered the prices. Lower discounts for low-grade ore also underpinned its prices.  The demand for iron ore has weakened, and the prices may continue to decline. As the cost efficiency of low-grade and medium-grade products outperforms that of high-grade products, the price spread between high-grade and medium-grade ore  will shrink further, and that between medium-grade and low-grade products will stabilise.

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