https://www.argusmedia.com/metals-platform/newsandanalysis/articl...

https://www.argusmedia.com/metals-platform/newsandanalysis/article/2366115-Vale-settles-4Q-iron-ore-pellet-premiums-much-lower

I posted the above link last August.
It states Chinese mills will not pay more than $20 pellet premium.
Since the beginning of the year to now the custeel pellet premium has ranged between $16 and $20.

China have been increasing their domestic pellet production rapidly.
Within this thread you can find a post reporting on a mining conference in Perth last year where it was stated China is targetting domestic pellet production of 500 mt.

We recently had an increase in energy costs of $19 aud, attributal to natural gas we receive to operate the Port Latta furnaces from Victoria via the Bass Strait pipeline. Along with such increase in energy costs, Australians are amongst the highest paid in the world . . . factors that make it difficult to compete with Chinese domestic pellet production.