With iron ore prices in the Chinese spot market unaltered since January 23 due to the Chinese holidays, coupled with uncertainties regarding the spread of the coronavirus in global terms, the price of the iron ore products in Brazil have declined in one week by $2/mt for exports and by $1/mt in the country’s domestic market.
Sinter feed fines prices of 65 percent iron contents are negotiated at $109/mt, equivalent lumps at $126/mt and equivalent blast furnace grade pellets at $138/mt, all CFR China conditions, dry basis.
In the Brazilian domestic market, for wet basis, such prices are now respectively $75/mt, $92/mt and $104/mt, ex-works conditions, no taxes included.
Preliminary indications were pointing to an increased volume of combined iron ore and pellets being exported from Brazil during the first three weeks of January. But with the release of lower volumes exported during the fourth week, the perspectives now are for a roughly stable volume for the January total, from the 24.62 million mt exported in December.
It is not clear if the shortfall during the fourth week already reflects developments of the situation in China, although the quotations of shares of the iron ore miner Vale and of the local steel producers have suffered a significant decline in the Sao Paulo stocks exchange this week.