The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $116/mt today, against $119/mt on August 8, CFR China conditions.
The decline still reflects an oscillating pattern, which includes a $8/mt decline two weeks ago and a $6/mt increase last week, deriving from news about the Chinese economy, now focusing on the crisis affecting the country’s civil construction sector. According to sources, the reduced demand for steel by the civil construction sector in China remains as the main threat to steel prices, affecting iron ore demand and prices.
Although conceding that prices should remain in an oscillating pattern over the next months, analysts maintain expectations for increased iron ore prices during the second half of 2022, with an average price for the Brazilian high-grade product around $125/mt during the period. So far in this half of the year, the average is $120/mt.
The price of blast furnaces grade pellets is now $142/mt, against $145/mt previously, with the same premium ascribed to the product, in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are now estimated at $82/mt for the iron ore and $109/mt for the pellets, against respectively $85/mt and $112/mt previously, ex-works, no taxes included.
The premium of the high-grade ore, in relation to the 62 percent Australian iron ore, when considering their iron units, is now 5.5 percent, from 3.5 percent previously, a figure now pointing to an increased demand for high-grade products.