Lump premiums hit year-low amid elevated inventory

Lump premiums faced pressure across both seaborne and portside markets. Between November 27 and December 4, the Mysteel PORTDEX 62.5% Lump Premium fell by 21.15% to Yuan 0.383/dmtu, while the Mysteel SEADEX 62.5% Lump Premium decreased by 24.32% to $ 0.007/dmtu. Both were at the lowest point of the year.

Weak fundamentals mainly drove the decline, as weaker demand led to elevated inventory levels. Specifically, the burden charge ratio of lumps at 114 steel mills fell by 0.19 percentage points on-week. Despite a slight recovery in profitability, most steel mills remained cautious, adopting an as-needed procurement approach. As a