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

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.

More popular news:

SMM Daily Comments (Jun 2): All Metals Closed Higher with SHFE Nickel Leading Gains, Coke Surged

SMM Daily Comments (Jun 5): Base Metals Mostly Fell, Ferrous Metals Bucked the Trend to Surge, Oil Gained Further on Saudi Arabia Output Cuts in July

Global Manufacturing PMI Continued To Fall In May, Points To Downturn In Global Economy

SMM Indonesia Nickel and Cobalt Industry Chain Conference: Global Nickel & Cobalt Supply and Demand Prospect, Impact from NEV Development

Indonesia Will Launch Nickel Price Index Applied for Domestic Policies and Deter Export Duties on Nickel Products

Chilean Tax Hike Will Deter Copper and Lithium Mine Investment, Push Japanese Mining Companies to Other 24 Countries

Glencore to Aggressively Expand Copper Capacity

World Bank Raises Forecast for Global Economic Growth in 2023 with Significant Increase for China, Emphasises Dangers of A High-Interest Rate Environment, But Lowers Forecast for 2024

Commerzbank Lowers Price Forecast for Copper, Aluminium, Zinc and Nickel for 2023 and 2024

Rumours Say Glencore Will Raise Takeover Bid for Teck Resources, but Another Big Obstacle Lies Ahead

Commodity Price Bubble Finally Burst, but Metals Demand Will Surge