Prices Of Medium And Low-Grade Iron Ore To Outperform High-Grade One

Published: Jun 5, 2023 18:03

Source: SMM

Save

SHANGHAI, Jun 5 (SMM) –The price difference between high and medium-grade ore narrowed slightly last week, while that between medium and low-grade ore expanded a little.

SHANGHAI, Jun 5 (SMM) –The price difference between high and medium-grade ore narrowed slightly last week, while that between medium and low-grade ore expanded a little. Taking Qingdao port as an example, the price difference between mainstream high-grade ore (IOCJ fines) and medium-grade ore (PB fines) narrowed 8 yuan/mt to 96 yuan/mt, while that between PB fines and low-grade ore (super special fines or SSF) expanded 3 yuan/mt to 122 yuan/mt. The cost performance of IOCJ fines and SSF was not as good as that of medium-grade ore, thus steel mills reduced purchases of the former.

At present, the supply of various types of iron ore at domestic ports is relatively sufficient. Steel mills will still favour medium and low-grade ore as their profits tend to shrink further in the off-season. The price discounts of SSF have expanded in June. As such, the prices of medium and low-grade ore may outperform those of high-grade one.

Market review

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 to learn 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

Feb 6, 2026 18:30

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

Feb 6, 2026 18:30

Feb 6, 2026 18:09

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day.

Feb 6, 2026 18:09

Feb 6, 2026 17:41

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

Feb 6, 2026 17:41