Maintaining a consistent decline over the last week, the price of ex-Brazil 65 percent iron sinter feed fines is now $189/mt, against $193/mt last week, CFR China conditions, marking the lowest quotation since February 8, still in a downtrend pattern, although 38 percent higher on yearly basis.
The price of the Brazilian blast furnace grade pellet, under the same conditions, is now $234/mt, against $251/mt previously, under the same conditions.
In the Brazilian domestic market, the prices are $150/mt for the ore and $196/mt for the pellets, ex-works, no taxes included, against $157/mt and $216/mt, respectively, one week ago.
The premium of the high-grade ore over the Australian 62 percent ore grade, when considering their iron units, has declined to 12 percent, against 13.2 percent last week, the lowest in recent weeks, but still reflecting a resilient demand for the high performance of the high-grade product in blast furnaces.
According to sources, the decline of iron ore prices is still linked to crude steel production cuts in China and depressing market sentiment. Iron ore imports could increase in volume over the next months, sources say, as the Chinese government has reached its goal in reducing iron ore prices.
The iron ore price performance over the period will then depend on the ability by players in the transoceanic market to cope with the additional demand for the ore, with ups and downs following the supply/demand balance.