Reflecting a higher premium when compared to last week, the price of Brazilian iron ore pellets has reached $289/mt, against a reference price of $287/mt last week, despite the reduction from $226.30/mt to $222/mt for the sinter feed fines of 65 percent iron contents over the same period, all considering CFR China conditions.
Sources mentioned that pellet prices have increased in line with the high operational margins of steel producers, leading to a strong demand for the high productivity associated with the utilization of pellets in blast furnaces.
Regardless of the reduced quotation of sinter feed fines, prices remain among the highest in historical terms, under the scenario of low liquidity in the seaborne market due to the Chinese holiday period.
According to analysts, iron ore prices are expected to increase after the holiday period, reflecting a strong rebound of the global economy, chiefly in the US and China. However, fears of undersupply persist, due to potential impact of the Covid-19 pandemic in iron ore producing areas such as South America, India and Africa.