The price of Brazilian high-grade iron ore, 65 percent iron contents, is $118/mt today, against $124/mt on 28 July, CFR China conditions.
Despite the sharp decline, the price showed a small increase from Thursday to Friday ($0.6/mt), pointing to the permanence of a scenario of uncertainties, positively affected by expectations of measures by the Chinese authorities to stimulate sectors of the local economy, while declining steel production in China and increased iron shipments by Fortescue, Rio Tinto, Vale and BHP play the negative role for prices.
Considering a seven-day moving average, the price of the high-grade iron ore has been in a downtrend since July 21.
The Brazilian high-grade product has now a premium of 7.4 percent in relation to the 62 percent Australian iron ore, when considering their iron units, against 7.1 percent previously, remaining in line with the historical average.
The export price of blast furnace grade pellets is now $135/mt, CFR China, against $141/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 now estimated at $95/mt for the iron ore and $113/mt for the pellets, against $102/mt and $119/mt previously, ex-works, no taxes included.
In July, Brazil exported 29.78 million mt of iron ore and 2.27 million mt of pellets, against respectively 32.58 million mt and 1.84 million mt in June.
