MYSTEEL: China's lump premiums retreat as demand subsides

After steadily rising throughout February, China's portside iron ore lump premiums have recently dropped. While the earlier increase was driven by firming demand and falling supply, the current pullback mainly reflects weakening fundamentals for lumps, according to Mysteel's latest report.

On March 23, the price spread between the 62.5% Fe Australian iron ore lump premium and 61.5% Fe Australian fines under Mysteel's assessment stood at Yuan 111/wmt, lower by Yuan 5/wmt from the intra-year high of Yuan 116/wmt recorded on March 13. The strength of lump premiums through mid-March was