The price of Brazilian high-grade iron ore, 65 percent iron contents, is $113/mt today, CFR China, against $121/mt on March 25.
According to sources, the sharp drop in a short period reflects concerns related to the Chinese demand for iron ore, amid the lack of consistent political measures to increase steel production in the country.
Sources mentioned that lower steel prices, and the consequent reduced margins achieved by steel producers, are having a negative effect on iron ore demand and prices. Sources say expectations for April are for a reduction, estimated at 8 percent, when comparing the volume of steel production in China to the same month in 2023.
The export price of blast furnace grade pellets is now $126/mt, against $134/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, is now 6.9 percent, against 6.1 percent previously, reflecting the 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 $82/mt for the iron ore and $94/mt for the pellets, against respectively $87/mt and $100/mt previously, ex-works, no taxes included. Such prices were positively affected by lower Brazil-China freight rates, as the domestic prices in Brazil are based on FOB prices, considering CFR China as reference.