BHP expects to see the price spreads across different grades of steelmaking raw materials to persist in the coming months amid supply-side reforms in China, among other factors.
"[...] We are optimistic that the 62% Fe index price [for iron ore] can be relatively resilient to slowing end-use demand and growing seaborne supply in the coming half year," the miner said in its economic and commodity outlook report published on Tuesday February 20. "Spreads between the 62% Fe index and lower-grade ores are likely to remain wide, with penalties for impurities at least as important as Fe units as a driver of that trend," it added. But BHP cautioned that it would be challenging to maintain the same average iron ore prices as those achieved in the second half...