Low-medium grade iron ore spreads narrow amid high iron ore prices

摘要

Low grade iron ore products continued to see discounts to medium grade fines narrow amid high iron ore prices. The spread between the 58% Platts iron ore index and the 62% IODEX narrowed to $13.15/dmt on Sept. 18. The spread was lowest since July 1, when it was assessed at $12.75/dmt, following a methodology change in specifications for the 58% index on May 4. Market sources said high premiums for medium grade fines were a key factor in shifting end-user procurement preferences toward lower-grade cargoes to manage production costs.