The price of ex-Brazil 65 percent iron sinter feed fines declined to $234/mt from $236/mt last week, CFR China conditions. Over the last two weeks, prices have declined by $22/mt.
A combination of multiple factors including lower demand from China remains negatively affecting iron ore prices, while the determination by Chinese authorities to cut steel production in three regions resulted in higher iron ore stocks at Chinese ports, putting additional pressure on prices. Stocks of iron ore at Chinese ports are currently estimated at six weeks of seaborne imports.
A seasonal reduced demand of steel products from the Chinese construction sector is also playing a role in the decline of iron ore prices, while on the supply side, news about an increasing export performance among Brazilian iron ore miners is also putting pressure on prices.
Brazilian iron ore exports are currently estimated at 1 million mt per day, with indications of increasing rates during the second half of the year.
The price of the Brazilian 65 percent iron ore has today a premium of 11.4 percent, when considering its iron units in relation to those of the Australian 62 percent iron ore, reflecting the strong demand for the high performance of the product in blast furnaces.
The price of the Brazilian blast furnace grade pellets has followed a similar pattern, declining to $302/mt from $305/mt previously.
In the Brazilian domestic market, such prices are estimated at $199/mt for the ore and $267/mt for pellets, against previously $201/mt and $270/mt, respectively, ex-works, no taxes included.