Price Spread between High and Medium-grade Iron Ore Expands Further while that between Medium and Low-grade Ore is Stable

SHANGHAI, Feb 10 (SMM) - In 2023, Brazil's heavy rains led to the extremely unstable vale's shipments and the arrivals of IOCJ were low. Coupled with the winter breaks and the increasing demand for high-quality fines, the prices were firm. The price spread between high and medium-grade expanded significantly. Although the demand for low-grade fines was stable, prices of SSF were suppressed by the increasing India fines. The price difference between medium and low-grade ore narrowed. As of now, the price difference between between high and medium-grade ore expanded 20 yuan/mt to 130 yuan/mt while that between medium and low-grade ore shrank 26 yuan/mt to 130 yuan/mt. In hindsight, the arrivals of IOCJ are unlikely to change in the short term. Affected by mine accidents last year, some mines in Shanxi and Hebei were still under maintenance, hence the supply of domestic concentrate decreased and some steel mills in Shanxi and Hebei increased their purchases of concentrate. According to SMM research, some mines in Shanxi and Hebei that ceased the production for inspection are expected to resume after the Two Sessions. Therefore, the prices of concentrate were still strongly supported. Meanwhile, the prices of low-grade ores such as SSF are expected to rise. And the price difference between high and medium-grade ores may continue to expand in February while that between medium and low-grade ores will remain stable.