The price of the 65 percent iron sinter feed fines of Brazil has declined to $222/mt from $246/mt late last week, CFR China conditions, still maintaining an oscillating pattern at high historical price levels, although it stands now at the fourth consecutive decline since $259/mt was achieved on May 18.
Sources ascribed the reduction to the weakening sentiment among Chinese players in the steel production chain, following meetings held by Chinese authorities during the weekend that discussed how to curb high commodities prices.
In a meeting with players in different commodities areas, the Chinese authorities have reportedly called leaders to “fulfill social responsibilities” and make decisions “for the benefit of the entire community.”
According to analysts, the message of the authorities was sent to investors on iron ore futures, considered as the main source of the instability of prices, which today are double the level seen one year ago in the seaborne iron ore market.
The iron unit of the 65 percent iron contents Brazilian product commands today a price premium of 14 percent over the iron ore unit of the 63 percent iron Australian product, the highest in a one-month period, reflecting the high demand for the product, due to its low level of emissions when processed in blast furnaces.