The price of Brazilian high-grade iron ore, 65 percent iron contents, is $123/mt today, CFR China, against $116/mt on April 8.
According to sources, the prices were positively influenced by expectations of higher iron ore and steel demand in China, and of short-term improvements in the country’s economy.
During the second week of the month, the daily crude steel production in China increased by 0.5 percent, while the increase of iron ore stocks in the country’s ports was limited to 0.2 percent, raising expectations by analysts that the crude steel production should remain in uptrend, while iron ore stocks should decline during the second quarter.
The export price of blast furnace grade pellets is now $135/mt, against $129/mt previously, reflecting a stable premium ascribed to the product, in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, is now 5.3 percent, against 6.0 percent previously, still reflecting the interest by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the prices are estimated at $95/mt for the iron ore and $108/mt for the pellets, against respectively $85/mt and $97/mt previously, ex-works, no taxes included. Such prices were positively affected by lower Brazil-China freight rates, as the domestic price of the ore is based on FOB prices, having CFR China as the reference.