Increasing Shift of Northern Chinese Steel Mills towards High Grade Ore

World's leading iron ore miner - Rio Tinto report suggests that steel mills in Northern Chinese province are blending around 70-75% of sinter feed and rest around 25-30% pellets and lumps which is direct charge material to furnace in the process of crude steel making.

Northern Province steel mills are using 40% fines in sinter blend process, out of which 25% share is of Fe 62% grade fines and 15% of Fe 58% grade fines.

Northern China is facing sintering cuts restriction imposed by the govt. due to reducing environmental pollution in the country. Northern Province of China has been badly affected area, therefore, steel mill owners in the Northern provinces are demanding high-grade iron ore to substantially reduce pollution.

As per the reports, Northern Chinese capacity has reduced sinter capacity and elevated the high-grade iron ore demand. Therefore the demand for higher grade iron ore with low alumina content value has increased drastically. Sellers are realizing the higher premium for the low alumina content iron ore and pellets.

Southern Provinces are using lesser Pellets- Rio Reports

As per the Rio Tinto reports, in Southern Province of China which is comparatively less affected to Northern Province, is blending 75-80% of iron ore and concentrate through the sintering process. Direct feed (Pellets and Lumps) material to the furnace is around 20-25%.

Southern Province steel mills are using 42% fines for sintering process out of which 31% is of Fe 62% grade and 11% of Fe 58%.