Prolonged tightness of high grade iron ore supply has continued to affect Chinese end-user procurement preferences well into the first quarter of 2021. Market sources pointed to strong support levels for floating premiums for available high grade cargoes, following rising demand from MENA end users, with continued high take-up of term contract volumes and higher spot demand.
Shipment data seen by S&P Global Platts showed the total percentage of iron ore shipments from Brazil to China in January and February was around 68.9% and 63.6%, respectively, from an average of around 73.9% in the fourth quarter of 2020. Comparatively, Brazilian iron ore shipments to the MENA region in January and February were at 6.2% and 8%, against a Q4 2020 average of around 4%. Shipments to Europe were at 6.8% and 9.2% in January and February against a Q4 2020 average of around 5.2%. Read more…..
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