Seaborne iron ore pellet prices continued outperforming iron ore concentrate in the week to Friday September 18, but with the end of sintering restrictions in China, demand for both has how begun to fall back.
Fastmarkets iron ore indices
66% Fe concentrate, cfr Qingdao: $135.56 per tonne, down $2.17 per tonne
65% Fe blast furnace pellet, cfr Qingdao: $147.25 per tonne, up $0.65 per tonne
Key drivers
Market participants said demand for pellet was slightly weaker compared to the week ended September 11, which was most likely to do with the lifting of sintering restrictions on September 14.
A trading source in southern China said the sintering restrictions were supposed to finish on September 11 and, as a result, demand for iron ore fines recovered just right at the time when mills started to replenish their iron ore inventories before the Chinese national holiday on October 1 to 8.
The source added that a dip in iron ore fines prices last week also depressed demand for pellet and concentrate due to their higher price levels compared with mid-grade...