The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $134/mt today, against $129/mt on October 24, CFR China conditions.
According to analysts, steel production in China remains at high levels, giving support to iron ore prices in China even though more steel plants in the country have started maintenance works, with the consequent reduction of demand.
The Brazilian high-grade product has now a premium of 3.0 percent in relation to the 62 percent Australian iron ore, against 3.7 percent previously, remaining among the lowest figures in recent years, reflecting the reduced importance currently ascribed by the integrated steel producers to the higher productivity of high-grade products in blast furnaces.
The export price of blast furnace grade pellets is now $154/mt, CFR China, against $149/mt previously, reflecting a stable premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are estimated at $103/mt for the iron ore and $123/mt for the pellets, against $102/mt and $122/mt previously, ex-works, no taxes included. Such prices were negatively affected by higher Brazil-China sea freight rates, as the domestic prices are usually based on FOB prices, considering the CFR China quotation as the reference.