Record-low discounts for low-grade iron ore weigh on Chinese steel production

Narrower Chinese steelmaking margins so far in 2023 have continued to support demand for lower-grade iron ore fines, which has led to historically-low discount levels and narrowed the gap to the price of higher-grade material - thereby putting pressure on steel mills to cut production rates, sources told Fastmarkets this week.

Adjusting blends to maintain margins

A steel mill source from South China said that the smaller discounts for low-grade fines for October-loading cargoes may push some steelmakers to increase their...


Alice Li

Shu Yi Zheng

September 29, 2023

12:37 GMT