The price for Brazilian high-grade iron ore, with 65 percent iron content, is now $120/mt, against $118/mt one week ago, CFR China.
Iron ore prices increased due to several factors, chiefly Rio Tinto's temporary halt of its Simandou project in Guinea after a fatal accident, which may delay the start of the mine’s production.
The export price of blast furnace grade pellets is now $139/mt, against $136/mt previously, CFR China, reflecting a 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, declined to 12.2 percent from 12.3 percent previously, still 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 $111/mt for pellets, up from $90/mt and $108/mt, respectively, ex-works and excluding taxes.
Based on figures of the first three weeks of August, the combined iron ore and pellets exports from Brazil remain pointing to a decline for the month’s total, from the 41.04 million mt exported in July.