The price of Brazilian high-grade iron ore, 65 percent iron contents, is $141/mt today, $4/mt less than yesterday’s quotation, CFR China conditions.
It is the largest single-day decline in more than a month, reflecting a market that remains negatively affected by the effective interventions of Chinese authorities, increasing the supervision of iron ore prices in order to reduce speculation with futures prices.
Sources mentioned that so far four interventions were registered, as authorities believe that the current price is not in line with supply/demand fundamentals of the iron ore market.
The Brazilian high-grade product has now a premium of 4.5 percent in relation to the 62 percent Australian iron ore, against 4.2 percent yesterday. Although remaining among the lowest figures in recent years, the increased premium now reflects more interest for high-grade iron ore products, which allow for reduced emissions and higher productivity in blast furnaces operations.
The export price of blast furnace grade pellets is now estimated at $163/mt, CFR China, against $167/mt previously, reflecting a roughly stable premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are estimated at $116/mt for the iron ore and $138/mt for the pellets, against $120/mt and $142/mt previously, ex-works, no taxes included.