Still declining along with other iron ore grades in the Chinese spot market, the price of ex-Brazil 65 percent iron sinter feed fines is now $158/mt, against $189/mt two days ago, CFR China conditions.
The price is still 16 percent above year-on-year prices, but the premium of the high-grade ore over the Australian 62 percent ore grade, when considering their iron units, stands now at 7.6 percent, the lowest in the year, an indication that the high performance of the ore in blast furnaces is not valued by integrated producers as it has been over the last months.
The price of the Brazilian blast furnace grade pellet, under the same conditions, is now $204/mt, against $234/mt previously, under the same conditions.
In the Brazilian domestic market, the prices are estimated now at $120/mt for the ore and $165/mt for the pellets, ex-works, no taxes included, against $150/mt and $196/mt, respectively, two days ago. In the domestic market, such high variations are usually attenuated by specific contract clauses.
Sources mentioned that the decline of $90/mt in a one-month period, although market driven, reflects the successful objective of Chinese authorities to reduce iron ore prices so that Chinese steel production can gradually increase over the next few months, increasing iron ore demand and positively affecting iron ore prices.