The Price Difference Between High And Medium-Grade Imported Iron Ore Widened In May, But That Between Medium And Low-Grade Ore Narrowed Sharply

SHANGHAI, Jun 13 (SMM) – The price difference between high and medium-grade ore widened in May, but that between medium and low-grade ore narrowed sharply. Steel prices collapsed in May due to growing supply and poor demand, forcing mills in Shanxi, Shaanxi, Sichuan and other regions to jointly shut down blast furnaces. This caused the demand for iron ore to drop sharply, sending iron ore prices down. In response to thin profits, steel mills still preferred low and medium-grade iron ore. Prices of IOCJ fines fell less sharply than PB fines as its cost performance and low iron ore concentrate production in Shanxi and Hebei boosted its demand. The demand for low-grade super special fines has been weak due to small discounts and poor cost performance. As of the end of May, the price difference between high and medium-grade ore expanded 10 yuan/mt to 96 yuan/mt, while that between medium and low-grade ore shrank 14 yuan/mt to 122 yuan/mt. Overseas mines will increase shipments in June to achieve quarterly targets.

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