Brazilian high grade iron ore price declines on lower steel prices

Thursday, 20 May 2021 21:59:16 (GMT+3)   |   Sao Paulo
       

The price of ex-Brazil 65 percent iron sinter feed fines has declined to $246/mt from $259/mt earlier this week, CFR China conditions, still maintaining an oscillating pattern at high historical price levels.

Sources mentioned that the price has declined as a reflection of lower demand and lower prices for steel products in China. The decline also reflects lower liquidity for iron ore as a whole, although high-quality Brazilian ore is maintaining consistent demand.

Today, the iron unit of the 65 percent iron contents product commands a price premium of 12.4 percent over the 63 percent iron Australian product, against a range of 7 to 9 percent over the last days. The premium is indicative of strong demand for the better performance of the high-grade ore in blast furnaces, compared to other grades.

Analysts believe that despite the reduction of prices over three consecutive sessions in the Chinese spot market, it is not possible so far to identify a downward trend in iron ore prices, quoting the Brazilian 65 percent iron contents sinter feed fines, currently valued 118 percent more than one year ago.

The evolution of iron ore prices remains indicative of a process similar to range-bound trading, when traders buy at a support price and sell at a resistance price.   


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