With the Chinese iron ore spot market maintaining a pattern of price oscillations, Brazilian sinter feed fines of 65 percent iron contents are now traded for export at $172/mt, against $181/mt last week, CFR China conditions, dry basis.
Sources mentioned that the decline was influenced chiefly by the release of data on the Chinese economy in January, indicating that it could face difficulties, at least temporarily; the country’s purchasing managers index (PMI) is indicating that, although expanding, China’s manufacturing activity is growing at the lowest rate since June 2020, after a peak achieved in November 2020.
Analysts believe that such a downturn reflects fears about the Covid-19 pandemic worsening in different world regions and postponing perspectives of a global recovery, resulting in poor steel demand. The scenario has outpaced positive perspectives for prices, given fears about of undersupply this year for iron ore due to problems at Vale’s Ponta da Madeira port and supply concerns derived from storms in Australia.
With increased lumps and pellets premium, Brazilian export offers for the products are quoted now at $197/mt and $225/mt, respectively, also CFR China conditions, dry basis.
With reduced sea freight rates, the prices in the Brazilian domestic market are now $147/mt for sinter feed fines, $172/mt for lumps and $200/mt for blast furnace grade pellets, ex-works, no taxes included.