Analysts at BB said CSN Mineração, the iron ore business of Brazilian steelmaker Companhia Siderurgica Nacional (CSN), should benefit from high Fe content iron ore, adding that CSN Mineração’s iron ore should reach a Fe content of 67 percent.
The market’s benchmark is a 62 percent Fe content product. Analysts at BB said buyers are willing to pay premiums over the market’s standard iron ore, which would benefit CSN Mineração.
BB analysts said the higher quality iron ore produced by CSN Mineração is due to the company’s recent expansion projects, as anticipated by SteelOrbis.
BB analysts said CSN Mineração is also in a good position to benefit from a growing demand for high quality iron ore, as the global steel industry moves toward a decarbonization.