The price of Brazilian sinter feed fines of 65 percent iron contents has declined by $5/mt from last week, reflecting negative concerns by market players in the Chinese spot market, chiefly the actions designed to control the resurgence of Covid-19 cases in China. As China is the destination of 73 percent of purchases of iron ore traded in the transoceanic market, the country is the main player in the establishment of market prices.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $190/mt, the equivalent lumps at $213/mt and blast furnace grade pellets at $237/mt, all CFR China conditions, dry basis. The premium for lumps and pellets in relation to sinter feed fines is stable from last week.
In the Brazilian domestic market, prices have also declined, with offers now respectively $162/mt, $185/mt and $209/mt, ex-works, no taxes included, compared to $167/mt, $191/mt and $215/mt, respectively, last week.
Despite of the weekly price decline, analysts believe that iron ore prices should increase over the next weeks, reflecting positive indicators in the Chinese economy, including industrial production increasing in December by 7.3 percent on yearly basis and crude steel production by the country increasing by 8 percent to 91.3 million mt under the same comparative basis.
In Brazil, preliminary numbers from the local customs authorities remain pointing to a stable volume of combined iron ore and pellets exports in January compared to the 33.16 million mt exported from Brazil in December.