Australia: FMG Narrows Discount on Low Grade Iron Ore Fines for Mar'20

Fortescue Metals Group - world's 4th largest iron ore producer has decreased discount on low-grade ore for Mar' 20. SteelMint has learned from the market participants that FMG has lowered discount of SSF low-grade fines (Fe 56.7%) from 18% in Feb’20 to 16% for Mar'20 deliveries.

As per the reports, amid shrinking steel margins Chinese mills turned interest towards low-grade ore for cost-effectiveness.

Earlier, the emanated Coronavirus outbreak in China desiccates the seaborne iron ore trade. Still, a substantial leeway of iron ore trade is a matter of concern.

The monthly average global iron ore fines (Fe 62%) up marginally to USD 92.63/MT, CFR China in Jan’20 against last month at USD 91.43/MT, CFR China.

As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports dropped to 128.6 MnT as of 20th Feb’20 as against 130.65 MnT assessed a week before.

FMG depicted record high half-yearly shipments in (H2 CY19). The shipments recorded 4% rise to 88.6 MnT as against 84.9 MnT in H1 CY19.