The price of Brazilian high-grade iron ore, 65 percent iron contents, is $125/mt today, against $128/mt on August 23, CFR China conditions.
According to sources, after a period of optimism by players in relation to increased iron ore demand from China, players are now disappointed by the fact that the measures adopted by Chinese authorities, to support the economy, did not result in a significant increase of iron ore demand.
Furthermore, players blame as “slow and incoherent” the measures adopted by the authorities to address the crisis in the real estate sector. Nonetheless, when considering a seven-day moving average, the price of the high-grade iron ore remains in uptrend over the last two weeks.
The Brazilian high-grade product has now a premium of 4.9 percent in relation to the 62 percent Australian iron ore, against 5.3 percent previously, still lower than the historical average, possibly reflecting the lower importance currently ascribed by the integrated steel producers to the improved productivity, characteristic of the higher-grade iron ores.
The export price of blast furnace grade pellets is now $143/mt, CFR China, against $145/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 estimated at $101/mt for the iron ore and $119/mt for the pellets, against $104/mt and $121/mt previously, ex-works, no taxes included.
