The price of ex-Brazilian high-grade iron ore, 65 percent iron contents, is $108/mt today, against $110/mt on August 30, CFR China conditions.
The decline reflects pessimism in relation to the recovery of steel production in China, as the country is facing a combination of problems, including new Covid-19 infections and consequent lockdown of important cities, the heat wave affecting the economy and a crisis in the real estate market.
Despite the declining price, the Brazilian high-grade product maintains a healthy premium of 8.2 percent in relation to the 62 percent Australian iron ore, against 7.4 percent previously, reaching the highest level in two months.
The price of blast furnace grade pellets is now $132/mt, against $134/mt previously, both FOB conditions, still 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 $87/mt for the iron ore and $111/mt for the pellets, against respectively $88/mt and $112/mt previously, ex-works, no taxes included.
In August, the combined exports of iron ore and pellets from Brazil reached 33.46 million mt, against 31.89 million mt in July, reflecting a strong shipment pace during the two last weeks of the month and reaching the highest monthly volume so far in the year.