Iron ore prices in the Chinese spot market shouldn’t reach more than $98/mt, sources told SteelOrbis late last week.
The forecast follows a comment by Vale, which said current prices for the product are “unsustainable” in the long term. The estimate is for iron ore containing 62 percent Fe.
According to Vale, iron ore prices in the Chinese spot market reached $87/mt last week. Media reports say the product is now being traded at $83.60/mt, and sources tell SteelOrbis they doubt prices will recover.
Vale said last week ideal prices should be at $115-$120/mt.
“Iron ore at $140/mt?” said one Sao Paulo-based source. “Forget it. The product’s price goes up in a week and falls in the other. Prices should remain in the $88-$98/mt range,” because, he added, the excess of demand has been pulling prices down.