The price of Brazilian high-grade iron ore, 65 percent iron contents, is $129/mt today, CFR China, against $130/mt on February 28.
When considering a seven-day moving average, the price has consistently declined since the beginning of February.
According to sources, investors are adopting a conservative posture while evaluating the economic targets approved by China’s National People’s Congress (NPC), which include a 5 percent economic growth.
Although no specific target for the steel industry was unveiled by the NPC, the players are evaluating possible links indicating increased demand for steel products, and iron ore as consequence, based on assumptions for sectors such as real estate and infrastructure.
The export price of blast furnace grade pellets is stable at $143/mt, 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 5.6 percent, against 5.7 percent previously, still 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 $100/mt for the iron ore and $113/mt for the pellets, against respectively $103/mt and $116/mt previously, ex-works, no taxes included. Such prices were negatively affected by higher sea freight rates, as the domestic prices are based on FOB prices, having CFR China as reference.