The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $113/mt today, CFR China, against $124/mt on March 12, the lowest price since May 2023.
The strong devaluation, in the view of sources, reflects a combination of facts, such as the slow pace adopted by steel producers in the acquisition of iron ore, the poor perspectives for the steel demand in China, and iron ore as consequence, and the high level of iron ore stocks in the country, now estimated to have reached a 12-month peak.
The export price of blast furnace grade pellets is now $137/mt, against $143/mt previously, 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 now 7.5 percent, the highest figure since August 2023, against 6.9 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 $79/mt for the iron ore and $93/mt for the pellets, against respectively $92/mt and $105/mt previously, ex-works, no taxes included. Such prices were again negatively affected by higher sea freight rates, as the domestic prices are based on FOB prices, having CFR China as reference.
