With the impact of reduced freight rates on FOB quotations, Brazilian iron ore prices have declined in average by only $2/mt on a weekly basis, while quotations in the Chinese spot market have declined by more than $4/mt over the period.
Regardless of two consecutive price declines, Brazilian market sources believe that prices will recover when Chinese consumers return at full pace to a new round of acquisitions after the local holiday period.
Sinter feed fines of 65 percent iron contents are now estimated to be traded for export from Brazil at $69/mt, the equivalent lumps $91/mt and blast furnace grade pellets at $137/mt, FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $63/mt for sinter feed fines, $85/mt for lumps and $131/mt for blast furnace grade pellets, ex-works, no taxes included.
Preliminary indications by Brazilian customs authorities point to a 14 percent decline in February from the 33.2 million mt of combined iron ore and pellets exported by the country in January.
