SMM

In April, the price spread between high and medium-grade imported iron ores narrowed significantly and that between the medium and low-grade ores expanded slightly. Since early April, accumulated steel inventories amid weakening demand have lowered the profits of steel mills. In order to reduce costs, steel mills have reduced the proportion of high-grade ore used while favouring medium- and low-grade ore. This, combined with a slight increase in the supply of domestic ore, weakened the demand for high-grade IOCJ.