The price of Brazilian high-grade iron ore, 65 percent iron contents, is $111/mt today, against $116/mt on August 15, CFR China conditions.
Still reflecting an oscillating pattern deriving from news about the Chinese economy, the focus now is the decision by Chinese authorities to temporarily shut production plants to save energy, due to a heat wave hitting the country, resulting in the suspension of steel production in some plants and the consequent reduction of iron ore demand.
According to analysts, expectations are maintained for increased iron ore prices during the second half of 2022, with forecasts maintained for an average price of the Brazilian high-grade product around $125/mt during the period.
The price of blast furnaces grade pellets is now $137/mt, against $142/mt previously, with the same premium ascribed to the product, in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are now estimated at $77/mt for the iron ore and $104/mt for the pellets, against respectively $82/mt and $109/mt previously, ex-works, no taxes included.
The premium of the high-grade ore, in relation to the 62 percent Australian iron ore, is now 5.9 percent, from 5.5 percent previously, a figure still pointing to an increased demand for high-grade products.