The price of Brazilian high-grade iron ore, 65 percent iron contents, is $124/mt today, CFR China, against $129/mt one week ago.
According to sources, despite recent signals of possible recovery, the feeling among traders remains pessimistic regarding domestic demand in China. Steel producers are reportedly apprehensive about the volumes of iron ore acquisitions for replenishing stocks, as their production pace remains negatively affected by the demand for steel products.
The export price of blast furnace grade pellets is now $137/mt, against $143/mt previously, reflecting a stable premium ascribed to the product, in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, is now 6.9 percent, the highest figure in eight months, against 5.6 percent previously, reflecting an increasing interest by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the prices are estimated at $92/mt for the iron ore and $105/mt for the pellets, against respectively $100/mt and $113/mt previously, ex-works, no taxes included. Such prices were again negatively affected by higher sea freight rates, as the domestic prices are based on FOB prices, having CFR China as reference.
In February, Brazil exported 26.47 million mt of iron ore (pellets excluded) and 1.83 million mt of pellets, against respectively 26.97 million mt and 2.36 million mt in January.
The main destinations of the iron ore were Asia (21.93 million mt, of which 19.39 million mt to China), the Middle East (2.17 million mt), Europe (1.87 million mt) and South America (220,900 mt), while small volumes were shipped to Mexico and to the US.
The main destinations of the pellets were Africa (774,400 mt), Argentina (305,200 mt), Europe (256,000 mt), Saudi Arabia (173,500 mt), Trinidad and Tobago (163,000 mt) and the US (153,900 mt).