The price of Brazilian high-grade iron ore, 65 percent iron contents, is $130/mt today, CFR China, against $135/mt on February 20, showing an oscillating pattern during the period.
According to sources, the prices are marked by volatility, derived from renewed hopes for the recovery of the steel demand in China, coupled with persistent concerns about the real estate market in the country.
Some analysts have commented that there is an incipient improvement in the construction activities in China after the holiday period, as construction companies are trying to take advantage of the lower steel prices to improve their margins.
The export price of blast furnace grade pellets is now $143/mt, against $149/mt previously, reflecting a slightly reduced 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 5.7 percent, 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 $103/mt for the iron ore and $116/mt for the pellets, against respectively $108/mt and $122/mt previously, ex-works, no taxes included.