Discounts for low grade iron ore fines widen amid production efficiency efforts

摘要

Singapore—The continuing preference for higher Fe cargoes in the mediumgrade fines market is having the flow-on effect of widening discounts for low grade fines products, iron ore market participants said Jan. 14. While steel margins have been narrowing due to rising prices for raw materials, discounts for low grade fines are widening as end-users continue to prioritize production efficiency over input costs, which has already resulted in spreads widening between medium grade cargoes with a higher Fe content and those below 62% Fe. In the low grade fines segment, higher coking costs have amplified the impact of weaker demand for lower Fe cargoes due to higher contaminant levels, market sources said.