According to sources, the reduction of iron ore prices in the Chinese spot market is a result of two key factors: the seasonal reduction of demand and finished steel prices in the country, and thus, softer finished steel prices, coupled with reduced production rates at local integrated mills.
Having the Brazilian sinter feed fines of 65 percent iron contents as reference, export prices have declined from a peak of $190/mt on 21 December to $174/mt today, CFR China, dry basis.
A cold wave in China, which has affected port operations, has also affected the local steel demand, putting additional pressure on iron ore prices.