The price of Brazilian high-grade iron ore, 65 percent iron contents, is $130/mt today, against $133/mt on September 15, CFR China conditions.
In the view of sources, the decline reflects pessimism by traders and investors in relation to the increased iron ore offers in China, coupled with concerns about the persistent decline of the real estate sector in the country.
However, when considering a seven-day moving average, the price of the high-grade iron ore remains in an uptrend since August 14.
The Brazilian high-grade product has now a premium of 1.4 percent in relation to the 62 percent Australian iron ore, stable from last week and still the lowest figure in recent years, fundamentally 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 $150/mt, CFR China, against $153/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 estimated at $108/mt for the iron ore and $127/mt for the pellets, against $111/mt and $130/mt previously, ex-works, no taxes included.
The combined exports of iron ore and pellets from Brazil, in September, are expected stay in line with the 37.51 million mt exported in August.