The price of Brazilian high-grade iron ore, 65 percent iron contents, is $115/mt today, against $119/mt on May 22, CFR China conditions. The price has consistently declined throughout the week, although prices are up $3/mt since yesterday, May 25.
According to analysts, today’s increase reflects the news that the utilization rate of blast furnaces in China has increased in average by 0.8 percentage points between May 19 and 25, repeating an increase in the previous week, and now reaching 89.93 percent.
However, sources tell SteelOrbis that expectations remain negative for the following weeks, due to disappointing data of the Chinese economy, coupled with perspectives of a summer seasonal reduction of activities of the country’s civil construction sector.
The Brazilian high-grade product has now a premium of 10.0 percent in relation to the 62 percent Australian iron ore, the highest since November 2022, against 9.1 percent previously, reflecting the resilience of the premium for high-grade iron ore products, despite the variation of prices.
The export price of blast furnace grade pellets is now $133/mt, CFR China, against $138/mt previously, reflecting now a slightly reduced premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are now estimated at $91/mt for the iron ore and $109/mt for the pellets, against $95/mt and $114/mt previously, ex-works, no taxes included.
In May, the Brazilian combined exports of iron ore and pellets remain pointing to an increase in relation to the 25.20 million mt exported in April.