The price of Brazilian high-grade iron ore, 65 percent iron contents, is $122/mt today, against $126/mt on April 21, CFR China conditions, returning to the level of mid-December 2022.
According to sources, the sharp decline still reflects a combination of factors, such as higher than expected offer of all iron ore grades, lower than expected steel production in China, and fears of more intense intervention in the iron ore market by Chinese authorities.
The Brazilian high-grade product has now a premium of 9.0 percent in relation to the 62 percent Australian iron ore, against 7.9 percent previously, confirming the good demand for high-grade products. Such premium is the highest since late December 2022.
The export price of blast furnace grade pellets is now $141/mt, CFR China, against $145/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 $99/mt for the iron ore and $118/mt for the pellets, against respectively $103/mt and $122/mt previously, ex-works, no taxes included.