Due primarily to strong steel prices, iron ore prices in the Chinese spot market have increased from their pre-holiday quotations, leading to an average increase by $8/mt for the Brazilian sinter feed fines of 65 percent iron contents, now quoted at $198/mt, CFR China.
Analysts have mentioned that many industries in China have decided to operate during the holidays, as usually-heavy travel was reduced due to restrictions imposed by Chinese authorities, resulting in a higher-than-expected demand for steel products during the period.
With increased premium for lumps and reduced premium for pellets, coupled with reduced ocean freight rates, prices now are estimated at $227/mt for lumps and $244/mt for pellets, CFR China.
In the Brazilian domestic market, sinter feed fines of 65 percent iron contents are quoted at $175/mt, lumps at $204/mt and pellets at $221/mt, ex-works, no taxes included.
Meanwhile, prices remain positively affected by the risk of undersupply in the seaborne iron ore market by Vale and by Australian miners. Sources mentioned that reduced steel inventories remain affecting positively steel prices and iron ore prices as a consequence.
Preliminary figures by customs in Brazil remain pointing to a sharp decline in February from the 28.71 million mt of combined iron ore and pellets exported from Brazil in January.