The price of ex-Brazil 65 percent sinter feed fines has reached $249/mt, against $256/mt late last week, CFR China conditions.
Sources mentioned that the decline reflects news about steel production cuts in some Chinese provinces expected for the second half of the year. However, sources mentioned that the increasing demand for iron ore outside China could compensate for its lower demand and support prices, referring specifically to Japan and South Korea. Iron ore prices under such considerations would ultimately depend on the effectiveness of the steel production cuts in China and on the recovery performance of the Brazilian iron ore production.
Since last week, the price of ex-Brazil high grade iron ore has maintained the pattern of rangebound oscillations at high historical levels, driving the premium of the iron unit of the high-grade Brazilian ore, in relation to the iron unit of the Australian 62 percent ore, to 10.6 percent, still reflecting the intense demand for products with higher productivity and low emissions in blast furnaces.
Over the same period, the price for Brazilian blast furnace grade pellets declined to $318/mt, from $324/mt previously, also CFR China conditions.
In the Brazilian domestic market, such prices are estimated at $214/mt for iron ore and $283/mt for pellets, against previously $215/mt and $280/mt respectively, ex-works, no taxes included.
Preliminary figures from customs now indicate that the combined exports of iron ore and pellets from Brazil could exceed 31 million mt in July, against 33.68 million mt in June.