Profits at steel mills continued to improve thanks to higher steel prices. The grade of ore used by some steel mills rose, and the demand for high-grade and medium-grade ore was stronger than that for low-grade ore. The price of ore rose faster than finished products recently, and the profits of steel mills have begun to shrink.
Steel mills are expected to mainly buy medium-grade and low-grade ore in the near term in the off-season. The spread gap between high-grade and medium-grade ore is expected to narrow slightly this week. That between medium-grade and low-grade ore is expected to be stable.
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