Reflecting pre-holiday activity in the Chinese iron ore spot market, the price of Brazilian sinter feed fines of 65 percent iron contents has reached $190/mt, against $185/mt earlier is this week, CFR conditions, dry basis.
For equivalent lumps and pellets, the prices now are estimated at $215/mt and $243/mt, under the same conditions.
In the Brazilian domestic market, the reference price for sinter feed fines is $165/mt, for lumps $190/mt and for pellets $218/mt, ex-works, no taxes included.
Prices in the Chinese spot market have oscillated throughout the week, having now achieved a level that is expected by analysts to remain roughly stable during the Chinese holiday due to limited market activity.
Meanwhile, prices remain positively affected by the risk of undersupply in the seaborne iron ore market by Vale and by Australian miners.
Preliminary figures by customs in Brazil are pointing to a decline in February from the 28.71 million mt of combined iron ore and pellets exported from Brazil in January.
According to a Brazilian source, “the combination of strong demand and supply disruptions over the coming months could sustain current pricing levels, potentially driving iron ore prices even higher.”