The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $116/mt today, against $118/mt on August 4, CFR China conditions.
A scenario of uncertainties persists, with different factors affecting prices. According to sources, the dominant view by market players now is that that Chinese authorities will not stimulate sectors of the country’s economy, chiefly civil construction as originally expected, which will reduce demand for steel products and iron ore as consequence.
Considering a seven-day moving average, the price of the high-grade iron ore has remained in downtrend since July 21.
The Brazilian high-grade product has now a premium of 6.9 percent in relation to the 62 percent Australian iron ore, against 7.4 percent previously, remaining in line with the historical average.
The export price of blast furnace grade pellets is now $134/mt, CFR China, against $135/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 $94/mt for the iron ore and $111/mt for the pellets, against $95/mt and $113/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.
The iron ore exports in July were destined to Asia (24.88 million mt, of which 21.47 million mt to China), the Middle East (2.01 million mt), Europe (1.70 million mt), South America (786,000 mt) and Mexico (403,300 mt).
The exports of pellets went chiefly to Africa (905,100 mt), Asia (680,700 mt), Europe (371,300 mt), and the US (145,800 mt), while small volumes were shipped to the South and Central Americas.