Pellet Price, page-258

• The global focus on iron ore quality is becoming more apparent as China’s prioritization on its environmental clean-up is generating a surging discount gap in material grades. The price premium between ore with 58% content and 62% has ballooned, widening from less than 15% at the start of 2016 to more than 45% yesterday, as benchmark ore sits at $41.76 and $75.71 respectively.
• The attention to quality has increased massively, with steelmakers focusing on higher-quality ore to boost productivity in China’s capacity-constrained environment with a focus on cleaner air. The Ministry of Environmental Protection’s clampdown on steel supply has cut pollution over the winter warming period, prompting mills to gravitate toward better-quality material that is cleaner and more efficient.

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