Vale raises premium of iron ore pellets for Q1 2021
2020-12-14 17:44:11 [Print]
Brazil-based Vale said last Friday it finished the settlement price for iron ore pellet premium contracts for the first quarter of 2021, which would increase compared with its fourth-quarter benchmark.
Vale said the premium of DR pellet in the first quarter would be $46.30/dmt based on 65% Fe fines. Vale announced in September that DR pellets would have a premium of $24/dmt in the fourth quarter of 2020.
Vale said the premium would be $40/dmt in the first quarter of next year and that is $20 in the fourth quarter of this year.
Steelmakers claimed the premium they received from pellet producers since the end of last November was higher than that of the fourth quarter.
Vale and several other pellet producers would offer a premium of about $46.3/dmt for the first quarter of next year in the global DR pellet market.
The DR pellet market sees tight supply and higher-grade ores for the coming months are booked. With spot prices of iron ore fines rising and DR pellet prices close to $190-$200/mt, the supply situation may change if contract performance decreases.
In the blast furnace pellet market, a premium of $40/dmt based on 65% Fe fines or a higher premium based on 62% Fe fines is not widely recognized, particularly in Europe.
The iron ore pellet premium takes spot iron ore fine price as basis, and the benchmark price of eight-year high may push up pellet cost and make it less attractive than iron ore lump.
Vale said the premium of DR pellet in the first quarter would be $46.30/dmt based on 65% Fe fines. Vale announced in September that DR pellets would have a premium of $24/dmt in the fourth quarter of 2020.
Vale said the premium would be $40/dmt in the first quarter of next year and that is $20 in the fourth quarter of this year.
Steelmakers claimed the premium they received from pellet producers since the end of last November was higher than that of the fourth quarter.
Vale and several other pellet producers would offer a premium of about $46.3/dmt for the first quarter of next year in the global DR pellet market.
The DR pellet market sees tight supply and higher-grade ores for the coming months are booked. With spot prices of iron ore fines rising and DR pellet prices close to $190-$200/mt, the supply situation may change if contract performance decreases.
In the blast furnace pellet market, a premium of $40/dmt based on 65% Fe fines or a higher premium based on 62% Fe fines is not widely recognized, particularly in Europe.
The iron ore pellet premium takes spot iron ore fine price as basis, and the benchmark price of eight-year high may push up pellet cost and make it less attractive than iron ore lump.
