In Western Liaoning, mainstream quotation for 66% fines rose to CNY 810 to CNY 830. Transaction remained thin as traders and part beneficiation plants were unwilling to sell at current price level. Cargos delivered to Lingyuan Steel remained few even after the mill raised its purchase price for 66% fines by CNY 80 to CNY 1,140 but we do not see a strong demand behind as Lingyuan’s Chinese ore inventory are relatively high at around 30 day level.
In Eastern Liaoning, mainstream quotation for 65% fines was assessed in the range CNY 790 to CNY 810 in Benxi and Fushun. Local mills said no purchase price adjustments in near term because of unclear market trend and relatively high inventories. As most beneficiation plants have yet to resume to work, supplies to mills has a sharp decline. Our contact told us Tonghua Steel now only had 2,000 tonnes per day versus the normal 8,000 tonnes per day.