The price of the Brazilian high-grade iron ore, 65 percent iron contents, is now $109/mt against $110/mt on May 6, CFR China.
Still in a narrow range since early April, the price now reflects the reduced interest by some Chinese steel producers for the replenishing of their iron ore inventories, in a process that started after the Chinese holidays period, with negotiations returning to normal conditions, in the view of analysts.
The export price of blast furnace grade pellets is now $122/mt against $124/mt previously, CFR China, reflecting the same 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 6.6 percent, against 6.8 percent previously, reflecting the 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 now $87/mt for the ore and $100/mt for the pellets against respectively $88/mt and $101/mt previously, ex-works, no taxes included.
In April, Brazil exported 28.267 million mt of iron ore (pellets excluded) and 2.086 million mt of pellets.
The destinations of the iron ore were Asia (25.502 million mt, of which 20.911 million mt to China), the Middle East (1.158 million mt), Europe (1.069 million mt), South America (411,200 mt), and Mexico (127,000 mt).
The destinations of the pellets were Asia (744,200 mt), Africa (503,200 mt), the US (448,300 mt), Trinidad and Tobago (176,000 mt), Europe (163,000 mt), and Saudi Arabia (51,700 mt).