The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $114/mt on March 5, against $120/mt on February 25, CFR China.
The iron ore price is negatively affected by concerns regarding the Chinese demand, in view of higher import tariffs in the US, and protective measures being adopted in different countries against imports of Chinese steel.
The export price of blast furnace grade pellets is now $132/mt against $138/mt previously, CFR China, 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, when considering their iron units, is 8.6 percent against 7.5 percent previously, now reflecting higher interest, at such price level, 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 reference prices are $91/mt for the iron ore and $109/mt for the pellets against respectively $100/mt and $118/mt previously, ex-works, no taxes included. These prices were negatively affected by higher Brazil-China freight rate, as the domestic price is based on FOB prices, having CFR China as the reference.
In January, Brazil exported 28.929 million mt of iron ore (pellets excluded) and 2.060 million mt of pellets.
Preliminary numbers continue to indicate the total exports of February were lower, due to the reduced number of working days, as per-day basis shipments were higher than the average of January.