<article><p class="lead">Australian iron ore producer Fortescue Metals has widened the discount for its 56.5pc Fe SSF fines for December, as higher profit margins shift steel mills' appetite to higher grade ores.</p><p>SSF fines will be priced at an 15pc discount to the December 62pc index compared with a 12pc discount for November index-linked cargoes, according to Chinese mill buyers.</p><p>The discount on 58.3pc Fe Fortescue blended fines will widen to 10pc from 7pc, while the discount on 57.3pc Fe King's fines will widen to 7pc from 6pc.</p><p>Fortescue's newest product, 60.3pc Fe West Pilbara fines (WPF), will be priced at a 3pc discount to the December 62pc index compared with a 1pc discount in November. Fortescue's lump discount widened to 10pc from 8pc.</p><p>A widening of Chinese steel profit margins in November has prompted mills to maximise output by <a href="https://direct.argusmedia.com/newsandanalysis/article/2008753">using more 62-65pc Fe ores</a>. </p><p>The Argus-assessed yuan-denominated SSF fines has widened its discount to the Argus PCX 62pc portside index from around 13pc in September to around 16-18pc in October-November. </p><p>SSF priced at 530 yuan/wet metric tonne (wmt) free-on-truck Qingdao on 22 November, an 18.5pc discount to the Argus PCX portside fines index at Yn651/wmt fot Qingdao.</p></article>
