Peruvian iron ore export prices fell 54.4 percent in March, year-on-year, reaching its lowest level in the first three months of the year, according to data released by the nation’s central bank, BCPR.
Contrarying the expectations of local traders, which told SteelOrbis earlier this year that export prices for the Peruvian commodity were likely to remain stable, the product’s price has been declining since December 2014, when it reached $39.50/mt.
Now, the commodity is being sold overseas at FOB $28.60/mt, down from FOB $32.40/mt in February and FOB $37.70/mt in January.
“It’s been very hard to predict what the product’s price in Peru will be like,” a source said. “The current world’s scenario is going against everyone.” Other sources said that local traders still believe prices could remain stable after four consecutive months of decline.
Current low prices for the Peruvian iron ore sector could have adverse effects on the nation’s mining industry.“They need to increase prices to have more revenue,” said one source.
Peru is the world’s 17th largest iron ore producer, bellow Chile (15th), Mexico (14th), Venezuela (11st) and Brazil (3rd).