The increased environmental awareness in China means that LKAB gets better paid for its iron ore, reports Sweden's Radio Ekot.
China has moved from a strong expansion phase to a more sustainability phase. One way of increasing productivity and reducing emissions is that the raw material is of high quality. This has led to a rise in demand for high-grade ore, but access has continued to be limited, "says Mathias Jarlbring, responsible for market analyzes at LKAB, to Ekot in Sweden's Radio.
About 85 percent of the mining company's products consist of so-called pellets, ie iron ore balls. During the year, the price of these has been in the range of $ 100-120 per tonne. For the fine mill iron ore, it is rather about 60-80 dollars per ton.
For LKAB, the favorable price situation on high-quality ore products and the strong demand adds to the cash register. A development that Jarlbring thinks is going on in future.
The trend is that we are moving towards more stringent environmental requirements, even globally. It also speaks of high-quality iron ore products.
