The port price of 62% Fe Iron ore was assessed at Yuan 966/wmt FOT East China March 16, equating to $141.96/dmt on an import parity basis, and the seaborne benchmark 62% Fe IODEX assessed at $145.45/dmt CFR China.
In contrast, the portside market had traded at an average premium of $3.29/dmt to the seaborne market on a 62% Fe basis for seven months in 2021, from late April to early November, and hit a record high of $19.69/dmt on May 10.
The slide from premium to discount coincided with portside stocks rising to 160 million mt in the current quarter from below 120 million mt in Q2 2021, based on observations by market sources, and the spread ended 2021 at a discount of $1.51/dmt.
The portside market has now been in discount to the seaborne market for four months, but that spread was likely to narrow in H2 March as seaborne demand, while strong, was proving weaker than market expectations.
