[Ferro-Alloys.com] Lower-grade iron ore contract prices will narrow or erase discounts in July, as spot differentials have gained further support from supply disruptions, product upgrades and margin pressures.
UK-Australian mining company BHP will narrow discounts for July monthly contracts for 60.5pc Fe Jimblebar fines (JMBF), 60.8pc Fe Mining Area C Fines (MACF) and 57.1pc Fe Yandi fines, Chinese market participants said.
The JMBF floating discount will narrow to 4.5pc below a June 62pc index from 7pc in June. MACF will price flat to index compared with a 0.5pc discount in June. The Yandi fines floating price will narrow to a 3.5pc discount to a 62pc index from 5.5pc in June. Floating prices are on a 62pc Fe basis.
BHP increased the typical Fe content for JMBF to above 60pc Fe from 1 July by revising its mining plan.
Australian iron ore producer Fortescue Metals narrowed discounts for its monthly contracts for the fourth time in five months.
Fortescue's newest product 61.2pc Fe West Pilbara Fines (WPF) will price flat to a 62pc index in July compared with a 1.5pc discount in June. WPF had priced at a 5pc discount in February.
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