Platts assessed the weekly spot lump premium at $0.26/dry mt unit, up $0.045/dmtu week on week, the highest since January 22.
The premium is normalized to a CFR basis and expressed over the IODEX fines assessment.
A seasonal boost in demand from Chinese steelmakers, sustained imports by Indian mills, and steady Japanese buying as a weak yen boosted demand for its exports were the main reasons for the rise in prices, market players said.
Trades said to have been done included a number on a flat price basis, at $91/dmt for 62% Fe Pilbara Blend lump and $93.30/dmt for 63.2% Fe Newman Blend lump Tuesday, both on a CFR Qingdao basis.
"We wanted to buy that PB lump cargo too, but were too late in submitting our bids so someone else got it instead," a Shanghai-based trader said. "Rio Tinto got very good response for that shipment and I think the $91/dmt trade was a price reflective of the market."
Wednesday saw three further trades for Newman Blend lump, with two at $94.25/dmt and one at $94/dmt CFR Qingdao.
Gunvor offered up to 100,000 mt of Newman Blend lump 62% Fe basis at $95.50/dmt CFR Qingdao on the Platts eWindow, but did not attract interest.
A major mill in eastern China was said to have sold half a Capesize cargo of prompt-arrival Newman Blend lump Wednesday at close to $93/dmt.
A source at a steelmaker in Hebei said lump premiums would remain firm as many sintering units have stayed shut among the northern mills, despite most blast furnaces having been allowed to come back online after the conclusion of the APEC summit.
"Mills are also cautious about reopening sintering facilities because it is the most polluting [process] in steelmaking."
Another trader in Singapore said that in flat price terms, lump prices were a lot lower than highs seen earlier this year, which may be a reason mill demand has been sustained.
Source: Platts
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
![Steel Insights](/assets/images/news/coal-insights.jpg)
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
![Steel Insights](/assets/images/news/ICMW_Jan09.gif)
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
![Steel Insights](/assets/images/news/ISMW.gif)
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
![Steel Insights](/assets/images/news/SteelInsights.jpg)
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.