Iron ore grades write up today AFR, page-34

Iron ore – premiums seen rising for high-quality magnetite as Chinese blast furnaces shun lower quality feedstock

• Headline prices for standard iron ore are falling due to a shift by blast furnaces to focus on higher-grade and cleaner feedstock
• Chinese steel producers are producing record tonnages of steel driven by better utilisation of blast furnace capacity through use of higher-grade magnetite
• Premiums for super-high grade Direct Reduction pellets with low phosphorous content are said to have risen dramatically.
• Pellet prices grading 65% are quoted at $127/t CFR Qingdao China vs $70/t for 62% iron ore concentrate. Higher-grade iron ore 66% concentrate is currently selling for $93/t