Price gap between medium and low-grade seaborne iron ore narrowed

The price difference between high and medium-grade ore stabilised last week, while that between medium and low-grade ore narrowed.

Taking Qingdao Port as an example, the price difference between the mainstream high-grade ore (IOCJ) and medium-grade ore (PBF) stabilised at 100 yuan/mt last week, while that between medium-grade ore (PBF) and low-grade ore (SSF) narrowed by 2 yuan/mt to 127 yuan/mt.

Due to poor liquidity at steel mills, their willingness to purchase raw materials is greatly affected by the sales of building steel products.

Weaker demand for building materials last week weighed on overall demand for iron ore.