Australia-based magnetite iron ore pellet producer Grange Resources has said that, despite the fall in global iron ore prices, the company continues to trade strongly, enjoying robust demand and profit margins so far this year.
In the January-February period this year, Grange has received an average price of A$105.4/mt for the high-grade iron ore pellets produced at its Savage River mine and pellet plant at Port Latta in Tasmania. Cash operating costs during this period were approximately A$68/mt.
Grange believes that the outlook for the pellet market is strong. The company's confidence in the strength of the pellet market is in part underpinned by the increasing environmental restrictions being implemented in China.