Atlantic iron ore contract pellet premiums for June remained steady at higher levels than in the first quarter, supported by second-quarter settlements in Europe. Demand for high-grade iron ore products has been robust on higher steel margins, and the wider spread for 65% Fe fines over benchmark 62% Fe IODEX supported pellet premiums. Signs of Q3 premium settlements were yet to be confirmed, at high overall prices, and with scrap prices closely tracked. The Platts June Atlantic contract blast furnace pellet premium was assessed at $65/dry mt for 65% Fe pellets, based on a 62% Fe IODEX basis. The premium tracked settlements levels in Europe reported for pellets, including high-grade, low silica pellets, with premiums for acid pellets heard agreed as much as $3/dmt or so lower. June’s assessment and premiums in Q1 factor in an increase of close to $22/ dmt from Q1 premiums.
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