The price of the 65 percent iron sinter feed fines of Brazil has declined to $242/mt from $259/mt three days ago, CFR China conditions. Sources say prices are still exhibiting an oscillating pattern, as another all-time high record price of $264/mt was reached two days ago.
Sources mentioned that the $17/mt decline in prices reflects concerns about reduced demand for steel products in different world areas, although even after such a decline the price remains among the highest in recent years.
According to sources, a decline in iron ore prices is not considered a surprise, as inventories in China remain high at both ports and steel plants, while the seaborne market is showing a good performance in both Brazilian and Australian supplies.
The risk notice recently issued by China’s Dalian Commodity Exchange (DCE), about an increased volatility in futures contracts, remains as a factor negatively affecting iron ore prices.