Ann: Appendix 4D - Half Year Ending 30 June 2022, page-68

From the fastmarkets article posted by miningnut . . .
"A mill source based in southern China said that the increase pellet consumption was being met with ample domestic supplies. Portside sales have not improved significantly in line with increased demand. Thus, import interest is not expected to firm up"

The fastmarkets article confirms what I have been thinking in regard to "why" we sold an 80,000 dmt shipment for a lousy $10 pellet premium.

2 years ago, China was already up to producing 250mt of pellets and installing more pellet processing plants at a rate of knots with a target of 500mt (see my post of 2 years ago with links)

It is little wonder then that the fast markets article states
1. pellet demand is being satisfied domestically
2. there is little interest in importing pellets

The answer "why" a lousy $10 pellet premium is that we are now competing with Chinese pellet producers who can produce pellets cheaper than Port Latta. That is not a dip situation but rather a situation that is here to stay.

One cannot put GRR, MGX, FMG in the one basket because they produce different products. Selling pellets made a lot of GRR holders wealthy but now the tables have turned and processing pellets is actually disadvantageous because with increased costs (particularly energy costs) the Port Latta furnaces cannot compete with the Chinese producers.