Insight
Does the iron ore market feel the need - the need for pellet feed?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Seaborne trade in pellet feed is a small but relatively fast growing segment of the iron ore market. Vale is the world's largest supplier of seaborne pellet feed but over the next five years its dominance will be challenged by Anglo American's Minas Rio and CITIC's Sino Iron. Seaborne pellet feed will have to be priced competitively in order to displace other forms of iron units in the consumption mix. We estimate that a $5/t premium over 65% Fe fines is appropriate over the medium term.
Table of contents
- Seaborne supply - a potential growth sub-set of the iron ore market
- Chinese demand – the worst is over for pellet feed
- Middle East – struggling to realise demand potential
- Vale
- CSN
- Anglo American (Minas Rio)
- CMP
- CITIC (Sino Iron)
- Ansteel (Karara Mining)
- Russian and Ukrainian suppliers
- How is it priced?
- Price outlook
Tables and charts
This report includes the following images and tables:
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Chart 1: global exports of iron ore (tonnes)Chart 2: global exports of iron ore (share)Chart 3: pellet feed exports by country
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Chart 4: pellet feed exports by companyDestination of Minas Rio material for the life of mine. Source: Reuters trade flowDoes the iron ore market feel the need - the need for pellet feed?: Table 1Chart 5: Pellet feed export cash cost curve 2016 (FOB)Chart 6: Iron ore export cash cost curve with pellet feed producers highlighted 2016 (FOB)Chart 7: Minas Rio quarterly realised price vs 65% Fe sinter fines indexChart 8: Average delivered 65% Fe pellet price (ex-VAT) in Anhui province vs 65% CFR sinter fines index
What's included
This report contains:
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