Iron ore in prices in Brazil have declined in average by $2/mt from last week, reflecting lower prices in the Chinese spot market.
According to Brazilian market sources, the decline reflects the postponement of fresh acquisitions by Chinese consumers, as negotiations are not completely restored after the Chinese holiday period. However, perspectives for higher prices in the short term continue.
Sinter feed fines of 65 percent iron contents are now estimated to be traded for export from Brazil at $71/mt, the equivalent lumps $92/mt and blast furnace grade pellets at $138/mt, FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $65/mt for sinter feed fines, $86/mt for lumps and $132/mt for blast furnace grade pellets, ex-works, no taxes included.
Preliminary indications by the local customs authorities point to a 5 percent decline in February from the 33.2 million mt of combined iron ore and pellets exported by the country in January. The projected decline does not yet reflect Vale’s reduced production at Vale, as the company continues to export iron ore from previous inventory at its ports.