Australia: FMG Further Increases Discount on Low Grade Iron Ore Fines for Oct'19

Fortescue Metals Group - world's 4th largest iron ore producer has increased the sub-grade iron ore discount for SSF (super special fines) for Oct'19. SteelMint has learned from the market participants that FMG increased its discount for SSF low-grade fines for the month of Oct'19 to 12% from 11% in Sep'19.

Why has discount on iron ore prices increased?

Spot iron ore fines Index: The global iron ore fines prices (Fe 62%) has increased to USD 98/MT, CFR China yesterday (17th Sept) as against USD 89/MT, CFR China a month back. The prices have increased by around USD 9/MT CFR China in a month. On weekly basis iron ore prices have increased by USD 6/MT against USD 92/MT CFR a week back.
High-grade iron ore fine prices (Fe 62%) have started to increase last week because of restocking by Chinese steel mills ahead a week long national holidays.

Iron ore inventory at China port down: As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports decreased by 1.8 MnT to 124.9 MnT this week as compared to 126.7 MnT a week ago.