The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $119/mt today, against $124/mt on May 15, CFR China conditions.
Prices were relatively stable last week, but news about expectations of a lower performance of the Chinese civil construction sector, coupled with a lower-than-expected pace for the evolution real estate prices in China, have raised doubts about the recovery of the sector, one of the main drivers for the steel demand in the country.
Iron ore prices were also negatively impacted by lower prices of steel products, with indications of price declines of 1.8 percent for rebar, 1.7 percent for HRC and 2.5 percent for wire rod, in the Shanghai Futures Exchange.
The Brazilian high-grade product has now a premium of 9.1 percent in relation to the 62 percent Australian iron ore, against 8.6 percent previously, reflecting the resilience of the premium for high-grade iron ore products, despite the variation of prices.
The export price of blast furnace grade pellets is now $138/mt, CFR China, against $142/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 $95/mt for the iron ore and $114/mt for the pellets, against $100/mt and $119/mt previously, ex-works, no taxes included.
In May, the Brazilian combined exports of iron ore and pellets are expected to increase in relation to the 25.20 million mt exported in April.