Brazilian iron ore prices decline following sharp increase

Wednesday, 20 May 2020 00:10:51 (GMT+3)   |   San Diego
       

Reflecting reduced quotations in the Chinese spot market, as ocean freight rates and premiums for lumps and pellets maintain the same levels, Brazilian iron ore export prices have declined $3/mt since yesterday.

Sinter feed fines of 65 percent iron contents are now negotiated at $112/mt, equivalent lumps at $124/mt and blast furnace grade pellets at $138/mt, against respectively $115/mt, $127/mt and $141/mt, all CFR China conditions, dry basis.

In the Brazilian domestic market prices have similarly declined. Such prices are now, respectively, $87/mt, $99/mt and $113/mt, comparable with $89/mt, $101/mt and $115/mt last week, ex-works conditions, wet basis, no taxes included.

Analysts in Brazil have mentioned that regardless of today’s decline, iron ore prices in the seaborne market are expected to resume their previous uptrend over the next few days, based on both supply and demand considerations.

Brazilian supply weakness remains as the main reason behind increased and resilient iron ore prices. Since the Brumadinho disaster last year, coupled with the impact of the Covid-19 pandemic, iron ore supply perspectives have consistently declined in the southeastern state of Minas Gerais, affecting operations at Vale and also CSN’s Casa de Pedra mine.

In the north of the country, Vale’s Carajas operations are reportedly facing maintenance problems, along with difficulties in the obtainment of licenses to increase production.

On the demand side, Chinese demand for iron ore has returned to pre-pandemic levels, with its steel industry operating at a 90 percent utilization rate, compared to 74 percent in February, with iron ore stocks at Chinese ports currently at a three-year low in terms of volume.


Similar articles

Iron ore prices in China gradually rise amid further stimulus hopes in Dec

21 Nov | Scrap & Raw Materials

Major steel and raw material futures prices in China – November 21, 2024 

21 Nov | Longs and Billet

Brazilian high-grade iron ore price increases from last week

20 Nov | Scrap & Raw Materials

India’s KFIL installs third oxygen plant at its Koppal mill

20 Nov | Steel News

Tata Steel ferroalloys division first in India to publish environmental protection declaration

20 Nov | Steel News

Daily iron ore prices CFR China - November 20, 2024

20 Nov | Scrap & Raw Materials

Major steel and raw material futures prices in China – November 20, 2024 

20 Nov | Longs and Billet

China’s iron ore output up 2.8 percent in January-October

20 Nov | Steel News

Daily iron ore prices CFR China - November 19, 2024

19 Nov | Scrap & Raw Materials

India’s KIOCL seeks overseas suppliers for iron ore concentrate-hematite for its pellet plant

19 Nov | Steel News