The price of Brazilian high-grade iron ore, 65 percent iron contents, is $109/mt today, against $116/mt on September 13, CFR China conditions.
According to sources, the decline reflects reduced steel demand for steel products in the Chinese market, due to the difficulties still faced by the local real estate market and by the restrictive policy adopted by the country to face the Covid-19 pandemic.
The Brazilian high-grade product has now a premium of 7.9 percent in relation to the 62 percent Australian iron ore, against 6.8 percent previously, a positive figure in historical terms.
The price of blast furnace grade pellets is now $133/mt, against $140/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 $87/mt for the iron ore and $111/mt for the pellets, against respectively $94/mt and $118/mt previously, ex-works, no taxes included.
Preliminary numbers from customs are pointing a higher volume of combined iron ore and pellets being exported from Brazil in September, compared to the 33.46 million mt exported in August.