Iron ore prices in the Chinese spot market have reached $197/mt for the Brazilian sinter feed fines of 65 percent iron contents, $232/mt for equivalent lumps and $258/mt for blast furnace grade pellets, CFR China conditions, against $190/mt, $225/mt and $251/mt, respectively, late last week.
Following oscillations over the last months at very high historical levels, this $7/mt increase reflects the increasing steel prices in the Chinese market and consequent high margins, allowing for the high price of iron ore products.
The demand for direct charge products, like pellets and lumps, is still pushing prices, as such products reduce the level of emissions in blast furnaces and require less coke to process, in line with increased demands from Chinese authorities to reduce emissions in the Tangshan area. Higher pellet prices reflect also the low availability of lumps in the seaborne iron ore market.
Today, the price per iron unit of the 65 percent Brazilian sinter feed fine, commands a 13 percent premium over the 62 percent Australian product, also reflecting the demand for lower emissions high-grade products.
Preliminary figures still point to an increase in March export volumes, from the 24.05 million mt of combined iron ore and pellets exported from Brazil in February.