The price of the Brazilian high-grade iron ore, 65 percent iron content, is $122/mt today, against $125/mt on 21 June, CFR China conditions.
This decline reflects the pessimism among players about the real estate sector in China, despite perspectives of the GDP in the country increasing by 5 percent in 2023. According to analysts, the civil construction sector, which accounts for 40 percent of the steel consumption in China, is not able to follow the strength of other sectors in the country.
The Brazilian high-grade product now has a premium of 5.2 percent in relation to the 62 percent Australian iron ore, when considering their iron units, against 4.4 percent previously, still remaining lower than the historical average.
The export price of blast furnace grade pellets is now $140/mt, CFR China, against $143/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 $98/mt for the iron ore and $116/mt for the pellets, against $102/mt and $119/mt previously, ex-works, no taxes included.
In June, preliminary numbers indicate that the Brazilian combined iron ore and pellets export volume has reached 34.41 million mt, against 35.18 million mt in May."