Interesting. Heavy tightening of SP10 discount from Rio could be...

Interesting. Heavy tightening of SP10 discount from Rio could be a precursor to what we could see with SSF shortly... current seaborne discount for SSF about 11%.


Below is from 13 March


https://www.google.com.au/amp/s/www...g-shift-brings-more-sp10-sales-to-china?amp=1

The producer last year sold Capesize cargoes of SP10 to an east China steel mill and a Chinese trading firm. A portside trading firm bought 140,000t of SP10 from the mill early this year and sold it at Rizhao port at prices similar to SSF fines at the port. A sale of 10,000t SP10 with 56.94pc Fe was done at 528 yuan/wet metric tonne at Rizhao on 8 March.



Below is from 17 June

https://www.hellenicshippingnews.co...ines-in-china-strong-on-high-iron-ore-prices/

Rio Tinto was heard to have sold a 190,000 mt cargo of 59% Fe SP10 fines at a discount of 6% over July IODEX assessment through a spot tender Thursday, for loading June 29-July 8.

The discount has narrowed from 13% two months ago, and market participants expected that SP10 will get more buying interest as the supply of mainstream cargoes was tight.

“Some mills used to buy MNP and BRBF only, but following a supply shortage this year they have to be more flexible,” a Chinese trader said.

Vale sold less Brazilian blend fines to China this year, due to the collapse of Brumadinho dam in Brazil which occurred in February.

Rio Tinto recently delayed July and August loading Pilbara Blend fines and Pilbara Blend lump to some term customers in China, and market sources estimated around 2 million mt of cargoes will be affected.