The price of Brazilian iron ore with a 65 percent iron content is now $124/metric ton (mt), CFR China, against $126/mt last week, market insiders told SteelOrbis.
Sources said the drop was mainly driven by easing worries about iron ore availability at Chinese ports, after local authorities lifted a ban that had prevented some domestic steelmakers from buying BHP volumes stockpiled at those ports.
Blast furnace-grade pellets are now exported at $142/mt, against $144/mt previously, showing a stable premium over same-grade sinter feed fines.
The premium for Brazilian high-grade ore containing 65 percent iron, relative to Australian ore with 62 percent iron, declined to 8.9 percent from the previous 9.3 percent, when considering the iron units, still reflecting high demand for high grade ores, insiders said.
In the Brazilian domestic market, reference prices are now $88/mt for the ore and $105/mt for pellets, against $93/mt and $110/mt previously, on an ex-works basis, no taxes included.
Domestic prices fell due to higher Brazil-China freight rates, since they are set on an FOB basis while using CFR China as the benchmark.
According to brokers Banchero Costa, the Tubarão-Qingdao freight rate stands today at U$33.67/mt, the highest in recent years.
