The price of Brazilian high-grade iron ore, 65 percent iron contents, is $138/mt today, against $143/mt on January 30, CFR China conditions.
Nonetheless, such price remains in uptrend since early November 2022, when considering a seven-day moving average.
According to sources, the decline reflects two sides of Chinese policy affecting the market: on one side, support for the real estate market is increasing the demand for steel products and, as consequence, the demand for iron ore, while in the opposite direction, Chinese regulators remain trying to impose barriers on the escalation of iron ore prices.
The Brazilian high-grade product has now a premium of 5.4 percent in relation to the 62 percent Australian iron ore, against 5.2 percent previously, reflecting a healthy demand for the premium iron ore.
The export price of blast furnace grade pellets is now $155/mt, CFR China, against $160/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 now estimated at $116/mt for the iron ore and $133/mt for the pellets, against respectively $121/mt and $138/mt previously, ex-works, no taxes included.