The price of the Brazilian sinter feed fines of 65 percent iron contents has oscillated last week in the Chinese spot market between a peak of $198/mt on Monday, down to $190/mt last Friday, after having achieved highs and lows of $188/mt and $194/mt along the week. All references are for CFR China conditions.
Today the price has declined to $188/mt, under the same conditions, in a pattern of oscillation in a high range considering historical levels. The pattern reflects the demand from China for products that require less coke to process in blast furnaces, such as higher-grade fines, lumps and pellets, as an alternative to curb emissions in Tangshan and cope with the additional regulations established by Chinese authorities.
In the case of lumps and pellets, the Chinese interest is even higher, as such products allow for direct charge in blast furnaces, avoiding emissions linked to the sintering process. Today, lumps are quoted for export at $217/mt and blast furnace grade pellets at $238/mt, also CFR China conditions.
In the Brazilian domestic market, sinter feed fines of 65 percent iron contents are traded at $163/mt, the equivalent lumps at $192/mt and blast furnace grade pellets at $212/mt, ex-works, no taxes included.
Due to a poor export performance during the second week of March, preliminary numbers from customs authorities are now pointing to a decline, in the whole of March, from the combined iron ore and pellets volume of 24.05 million mt exported from Brazil in February.