The price of Brazilian high-grade iron ore, 65 percent iron contents, is $110/mt today, against $113/mt on August 25, CFR China conditions.
Expectations are maintained for Brazilian high-grade iron ore to average $125/mt during the second half of the year. So far, the average is $118/mt during the period.
The price of blast furnace grade pellets is now $134/mt, against $137/mt previously, reflecting a stable premium ascribed to the product in relation to the equivalent sinter feed fines.
A source linked to a steel producer mentioned that the blast furnace grade pellet premium, for the fourth quarter of the year, is expected to decline from the price during the third quarter, as the current steel prices could not justify the use of the costly product.
In the Brazilian domestic market, the prices are now estimated at $88/mt for the iron ore and $112/mt for the pellets, against respectively $91/mt and $115/mt previously, ex-works, no taxes included.
The premium of the high-grade ore, in relation to the 62 percent Australian iron ore, is now 7.4 percent, from 6.4 percent previously, the highest figure in more than one month, reflecting the increasing demand for high grade ores.