According to Fast Market analysis on Tuesday, August 7, the change in the premium of sponge iron for transportation in the third quarter of this year reached $ 70 per ton, and market sources believe that it has resumed its peak and may in The fourth quarter of this price growth will be accompanied by adjustments and declines.
*** Change sponge iron premium and declining global transactions
In the global steel market, a global price drop is on the way, which will also affect premiums. Implicitly, whenever the price of iron ore falls, so does the price of steel. “Therefore, in pessimistic market conditions, sponge iron premium should also be reduced. In the analysis of the previous days, we said that China has accompanied the iron ore market with a sharp drop in prices.
This issue will be extended to other steel markets and for The Iranian market will also be promising for falling prices, with one of the major buyers of sponge iron telling the fast market that shortages of raw materials have always stimulated market growth in such circumstances, but due to the temporary drop in iron ore prices “Samarco is increasing supply [and] Bahrain Steel can also offer additional shipments.”
*** Fast Market assessment of possible drop in prices in the raw materials market
Fast Market assessed the price of Change sponge iron premium 65 on the Middle East Reference Index for Fine Materials on July 30 at $ 70.00 per tonne. While in June it was $ 60.20 per ton. Calculation of the iron ore index, 65% fine from Brazil, Jingdao – cfr – which has been used as the basis for premium contracts in sponge iron trading since 2019. It averaged $ 246.10 per tonne in July.
The figure remained almost unchanged at $ 246.01 per tonne, and June did not see a price increase in this regard. Buyers have accepted the Change sponge iron premium at $ 70 per tonne for shipments in the third quarter. But the fast market was told that the premium will probably be reduced in the three months of October-December this year.
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