MYSTEEL: China's high-medium Fe iron ore price spread nears 5-month high

The price difference between high-grade and medium-grade iron ore has rebounded sharply since mid-January, chiefly driven by a clear divergence in availability of the two ore types, Mysteel observes in a new report on the commodity. However, further upside room for the spread appears limited as steelmakers may curb high-grade ore use should the premium squeeze their profit margins.

As of March 10, the spread between 65% Fe Carajas Fines and 61.5% Fe PB Fines at Qingdao port in North China under Mysteel's assessment had widened to a near five-month high of Yuan 132/wmt ($19.2/wmt), up by a striking 73.3% from the multi-year low of Yuan 75/wmt recorded