Still reflecting strong steel prices, iron ore prices in the Chinese spot market have maintained their current uptrend, reaching an all-time high of $200/mt for the Brazilian sinter feed fines of 65 percent iron contents, CFR China.
With stable premium for lumps and pellets, coupled with also stable ocean freight rates, offers for lumps for export have reached $229/mt and blast furnace grade pellets have reached $246/mt, under the same conditions.
In the Brazilian domestic market, sinter feed fines of 65 percent iron contents are quoted at $177/mt, lumps at $206/mt and pellets at $223/mt, ex-works, no taxes included.
According to sources, emissions restrictions in China’s Tangshan area could reduce the volume of steel production and the demand for sinter feed fines, although the demand for higher grade fines, lumps and pellets—usually linked to higher productivity and reduced emissions in blast furnaces—could actually increase over the next few weeks.
Similar to the last couple weeks, iron ore prices remain positively impacted by the risk of undersupply in the seaborne iron ore market from Brazil’s Vale operations and Australian miners.
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. The figure for February is expected to be limited to the range of 23 million mt to 24 million mt.