The price of Brazilian high-grade iron ore, 65 percent iron contents, is $113/mt today, against $108/mt on September 2, CFR China conditions.
The increase reflects chiefly higher prices of steel products, while the components of the supply/demand balance remain unchanged, except for temporary factors such as the typhoon that hit South Korea and the heat wave hitting China.
Analysts from a bank in Brazil said that they have maintained positive expectations about medium term price of the iron ore, based on future challenges in the supply side.
The Brazilian high-grade product has now a premium of 7.7 percent in relation to the 62 percent Australian iron ore, against 8.2 percent previously, still a good figure in historical terms.
The price of blast furnace grade pellets is now $137/mt, against $132/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 now estimated at $90/mt for the iron ore and $114/mt for the pellets, against respectively $87/mt and $111/mt previously, ex-works, no taxes included.
In August, Brazil exported 32.39 million mt of iron ore (pellets excluded) and 1.07 million mt of pellets, against respectively 30.10 million mt and 1.79 million mt in July.
The main destination of the iron ore in August was Asia (27.23 million mt, of which 24.31 million mt shipped to China), followed by the Middle East (2.73 million mt), Europe (2.05 million mt) and South America (241,200 mt).
The pellets were destined to the US (335,600 mt), South Korea (280,100 mt), Japan (167,100 mt), Egypt (162,500 mt) and Argentina (113,500 mt).