The price of Brazilian high-grade iron ore, 65 percent iron contents, is $125/mt today, against $129/mt on October 16, CFR China conditions.
According to sources, the decline reflects concerns by players in relation to the real estate market in China, coupled with data reporting steel production in a lower-than-expected pace.
The Brazilian high-grade product has now a premium of 3.3 percent in relation to the 62 percent Australian iron ore, against 2.5 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 $146/mt, CFR China, against $149/mt previously, reflecting a slightly increased premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are estimated at $96/mt for the iron ore and $117/mt for the pellets, against $101/mt and $120/mt previously, ex-works, no taxes included.