Iron ore price, page-597

December Q Platts 62% was US$70.75/dmt, and FMG realised price was US$64.87/dmt

March Q Platts 62% was US$84.82/dmt, and FMG realised price was US$65 / dmt

The two Q have almost the same price. This is just to show how popular HIGH GRADE IO was in March Q.

Now in the last week or so, High grade IO inventory have increased a lot because steel mills are buying low grade to keep their "fat" margins, in expanse of air quality, I didn't see this coming from the Chinese, in Western world, it will never happen, but in China, looks like money talks and profit before anything.

Some large steel mills still enjoy 300 to 600 yuan margins, smaller mills are down to 100-200 yuan. Some said the margin are still too high, they were once around 1000 yuan per ton margin earlier in March this year.

DYOR.

Frank.