Lump Premiums Rose but to Fall, Production Restrictions Of Sintering Machines In Tangshan Will Last For A Long Time

Published: Jun 12, 2023 17:04

Source: SMM

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Last week, pellet and lump premiums rose. The price of coke continued to decline previously, and the demand for lump from steel mills increased significantly. As a result, the premium of lump rose. The increase in the premium of pellets was small. At present, the price difference between lump and pellet has shrunk, and this resulted in an increase in the cost efficiency of pellets. Therefore, demand improved and pellet premiums rose. The rainy season in north China will gradually arrive and the moisture content of lump will be relatively high.

Besides, coke prices did not fall last week despite the requirements for price cuts. It is expected that the demand for lump will weaken. However, the production restrictions of sintering machines in Tangshan will last for a long time. Considering the tight supply of sinter feed at some steel mills, demand for lump is likely to increase.

Therefore, it is expected that the lump premium may rise. However, as demand for imported pellets may be squeezed due to the increase in domestic pellet production, it is expected that the premiums of pellets will decline this week.

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