In China’s limited demand for high-grade iron ore, most steel makers use low & midgrade iron ore. Many mills are reducing steel productivity. Since April, most of the mills have been adopting cost reduction plans, even making human resources planning for cost-cutting.

Inventories of high-grade iron ore and pellets are piling up at ports in China, indicating less demand. Even few firms are working with negative margins. The fall in steel prices has affected the need for higher grades. So, for them, it’s not possible to buy more cargo even though a few firms have suspended the purchase of raw materials till than the prices of iron ore will not get stable.

Importers are not looking for other cargo bookings due to low demand. Buyers and sellers have denied accepting the 50% tariff on export from India.

An exporter Ferrexpo is the 3rd most significant iron ore manufacturer. Its high-grade iron ore is a good quality form with a 30% carbon emissions decline. Ferrexpo is facing problems at ports on the Black Sea due to limited supply and logistics issues. Therefore, it looked challenging to ship cargoes of high-grade iron ore pellets from Ukraine due to war.

In China, iron ore indices of 65% Fe blast furnace pellet, CFR have declined by US$10.01/MT and reached US$146.84/MT. Index of 65% Fe fines iron ore pellet, CFR has fallen by US$1.70/MT and came to US$29.30/MT. There is a decline of US$13.84/MT in 66% Fe concentrate, CFR Qingdao, and reached US$123.12/MT.