In line with the decline in iron ore prices in the Chinese spot market, iron ore prices in Brazil have also decreased week-on-week.
Sinter feed fines of 65 percent iron contents are now traded for export at $167/mt, the equivalent lumps at $175/mt and blast furnace grade pellets at $188/mt, all CFR China conditions, dry basis. Last week, prices were reported at $160/mt, $164/mt, and $186/mt, respectively.
In the Brazilian domestic market, such prices now are $146/mt, $154/mt and $168/mt, respectively, ex-works, dry basis, no taxes included.
According to sources, steel producers in China have complained to local authorities that the surge in prices was not dictated by market fundamentals and were the result of speculation. It is not clear so far if prices have decreased due to fear, by the miners, of future measures by the Chinese authorities.
One of the reasons for the surge of prices that lasted until December 11 was the reduced volume of iron ore exports from Brazil in November, but numbers from the local customs are now pointing to an increase in December from the 29.15 million mt of combined iron ore and pellet exports in November. Such an increase, however, is not sufficient to significantly impact prices, currently pushed by high demand and low inventories in China.