The price of the 65 percent iron sinter feed fines of Brazil is now being heard at $248/mt, against $254/mt earlier in this week, CFR China conditions.
Despite the $6/mt decline, the ore price maintains a pattern of oscillation at historically high levels.
Under the same conditions, the price of blast furnace grade pellets has reached $313/mt against $319/mt previously.
In the Brazilian domestic market, the prices are $215/mt and $280/mt for the high-grade ore and for pellets, respectively, ex-works, no taxes included, against $221/mt and $286/mt previously.
According to sources, the decline reflects doubts by market players about possible cuts of crude steel production in China, combined with fears of reduced demand for iron ore.
On the supply side, the combined iron ore and pellets exports from Brazil, after having consistently increased on annual basis over the last eight months ended in June, is seeing a similar pattern in July, with eight million mt having been exported during the first eight days of the month, pointing to another month of strong performance. The largest export volumes have been shipped by Vale, which has recently announced the restart of a ship loader at the maritime terminal of Ponta da Madeira, which had been damaged by fire in January 2021.
Doubts persist, however, about an energy crisis forecasted for the second half of the year, and the impact that may have on mining activities.