Prices for seaborne iron ore pellets and concentrate surged in the week ended Friday April 23 due to strong demand for high-grade products amid ongoing measures to cut emissions in China and supply concerns due to India's deteriorating Covid-19 situation.
Fastmarkets iron ore indices
65% Fe blast furnace pellet, cfr Qingdao: $252.38 per tonne, up $21.26 per tonne.
66% Fe concentrate, cfr Qingdao: $219.13 per tonne, up $12.17 per tonne.
Key drivers
Iron ore pellets, particularly low-alumina products, were selling very well last week, sources told Fastmarkets.
A trading source in southern China said strong steel prices in the country had improved mills' margins, allowing them to afford high-grade iron ore amid steelmaking restrictions to lower emissions. As such, demand for pellets strengthened further last week.
When it came to Indian pellets, low-alumina materials generated more interest among buyers due to the ability of such products to make the steelmaking process more efficient. As such, cargoes of low-alumina Indian pellets were offered at much higher prices than other brands in the segment, he said.
A trading...