Seaborne iron ore pellet and concentrate prices increased in the week to Friday April 16, amid growing demand driven by the ongoing emissions restrictions in the Chinese steelmaking hub of Tangshan, sources told Fastmarkets.
Fastmarkets iron ore indices
۶۶% Fe concentrate, cfr Qingdao: $۲۰۶٫۹۶ per tonne, up $6.90 per tonne.
۶۵% Fe blast furnace pellet, cfr Qingdao: $۲۳۱٫۱۲ per tonne, up $2.14 per tonne
The Tangshan emissions restrictions boosted demand for high-grade iron ore in the region, with the curbs on steel production also pushing up finished steel prices, leading to very healthy margins for steel mills, according to several sources.
A trader in northern China said the healthier mill margins supported the use of higher-grade iron ore, leading some buyers seek out higher-quality iron ore such as Bahrain iron ore pellets.
Indian pellets, however, were still being actively offered in the market, the trader added.