The price of Brazilian high-grade iron ore, 65 percent iron contents, is $125/mt today, against $130/mt on September 19, CFR China conditions.
The lowest price in a one-month period, in the view of sources, reflects concerns by traders about lower-than-expected consumption of steel products by the civil construction sector in China, coupled with prospective restrictions to the steel production during the winter in the country, and the approaching end of the restocking of iron ore by steel producers before the Chinese holidays period.
The Brazilian high-grade product has now a premium of 1.5 percent in relation to the 62 percent Australian iron ore, against 1.4 percent previously, still one of the lowest figures in recent years, 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 $145/mt, CFR China, against $150/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 $102/mt for the iron ore and $121/mt for the pellets, against $108/mt and $127/mt previously, ex-works, no taxes included.