Tightening supply supports China's iron ore lump premium

China's portside iron ore lump premium against 62% Fe fines has strengthened markedly over the past two weeks, climbing to a near 10-month high by Tuesday. The increase has been largely driven by tightening lump supply in China, even as the appetite of steelmakers for the material wanes, Mysteel Global noted.

On May 21, Mysteel assessed the 62.5% Fe Australian iron ore lump premium against 62% Fe Australian fines in the Chinese portside market at Yuan 1.5905/dmtu ($0.234/dmtu), up by Yuan 0.4644/dmt on month. Iron ore demand among Chinese steelmakers has remained firm in recent months as mills have kept their