The settlements for BF-grade pellet premiums are double the $20/dmt premium in the previous quarter and 93pc higher than $24/dmt for DR-grade pellets.

Quarterly iron ore pellet premium contracts are largely settled between Vale and ex-China buyers on a floating basis. The price increases have been driven by a post-Covid-19 rebound in global steel output and demand that has tightened supplies of iron ore in seaborne markets and steel supplies in Europe, a major buyer of Vale pellet.

Most of Vale's pellet is sold into Europe, so the higher premium is about its post-Covid-19 recovery, an east China iron ore trader said. Pellet demand is also higher in China during the seasonal winter increase, he said.

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China Ferro-Alloys Industry Annual Conference & Market Outlook of Manganese, Chrome, Nickel Ore & Ferroalloys

Dec. 23, 2020 Beijing China

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• [Editor:kangmingfei]