Brazilian high-grade iron ore (65% Fe) is now priced at $118/mt, down from $121/mt one week ago, CFR China.
Analysts indicate that the decrease is attributable to concerns regarding Chinese demand for the ore, which stems from ongoing weakness in the country’s industrial sector. This has led to reduced steel demand, while iron ore inventories remain elevated and the offers of imported ore continue to increase.
The export price of blast furnace grade pellets is now $136/mt, against $139/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 8.2 percent, against 8.6 percent previously, still reflecting reduced 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 $93/mt and $112/mt previously, ex-works and excluding taxes.
In September, Brazil exported 36.5 million mt of iron ore and pellets, and volumes in October are expected to be slightly higher.
