The price of Brazilian high-grade iron ore, 65 percent iron contents, is $129/mt today, against $125/mt on October 20, CFR China conditions.
According to analysts, the increase reflects optimistic market expectations in relation to a possible additional emission of the Chinese sovereign debt, as part of the government’s efforts to stimulate the economic growth, despite concerns over the crisis of the Chinese real estate sector.
The Brazilian high-grade product has now a premium of 3.7 percent in relation to the 62 percent Australian iron ore, against 3.3 percent previously, remaining among the lowest figures in recent years, reflecting the reduced importance currently ascribed by the integrated steel producers to the higher productivity of high-grade products in blast furnaces.
The export price of blast furnace grade pellets is now $149/mt, CFR China, against $146/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 $102/mt for the iron ore and $122/mt for the pellets, against $96/mt and $117/mt previously, ex-works, no taxes included.