Iron ore prices in the Chinese spot market have reached $190/mt for the Brazilian export sinter feed fines of 65 percent iron contents, $225/mt for equivalent lumps and $251/mt for blast furnace grade pellets, CFR China conditions, against $187/mt, $221/mt and $240/mt, respectively, earlier this week.
Still oscillating at high historical levels, the increase has its focus on lumps and pellets, reflecting the Chinese demand for products that allow for direct charge in blast furnaces, such as lumps and pellets, which lower the emissions associated to the sintering process and consume less coke.
In relation to pellets, the current premium for the product in the Chinese market is estimated around $60/mt, the highest figure in recent years, reflecting also the low availability of lumps in the seaborne market.
Regarding the Brazilian sinter feed fines of 65 percent iron contents, its premium in relation to the Australian 62 percent iron has reached 13 percent, against 12 percent earlier this week and the highest figure since May 2020, still reflecting the search for the reduced emissions associated to the higher-grade product.
In the Brazilian domestic market, iron ore prices are estimated at $161/mt for sinter feed fines of 65 percent iron, $197/mt for equivalent lumps and $222/mt for blast furnace grade pellets, comparable to respective prices last week of $160/mt, $193/mt and $212/mt ex-works, no taxes included.