Brazilian high-grade iron ore (65% Fe) is now priced at $118/mt, down from $123/mt one week ago, CFR China.
According to reports, the decline is attributed to negative data released by Chinese authorities, which has led to concerns about the short-term outlook for iron ore demand. Additionally, restrictions on steel production intended to reduce air pollution have prompted steel manufacturers to plan their maintenance shutdowns earlier than usual.
The export price of blast furnace grade pellets is now $137/mt, against $142/mt previously, CFR China, reflecting a roughly stable premium relative to equivalent sinter feed fines.
The premium for Brazilian high-grade ore, containing 65 percent iron, relative to Australian 62 percent iron ore, based on their iron units, is stable at 9.2 percent, maintaining a high premium in historical terms, reflecting the interest of steel producers for the high performance of premium products when processed in blast furnaces.
In the Brazilian domestic market, reference prices are now $92/mt for the ore and $110/mt for pellets, against respectively $95/mt and $113/mt previously, ex-works and excluding taxes.
In September, Brazil exported 36.5 million mt of combined iron ore and pellets. So far, perspectives point to an equivalent volume for the total in October.
