The price of the Brazilian high-grade iron ore, 65 percent iron contents, is now $114/mt against $109/mt on May 9, CFR China.
In the view of analysts, the $5/mt increase reflects the measures adopted by the US and China to reduce their import tariffs, increasing hopes for an end to the tariffs dispute.
Under this provisional agreement, China will lower the tariff on goods imported from the US to 10 percent, while the US will limit the tariff to 30 percent on low-priced goods imported from China.
The export price of blast furnace grade pellets is now $127/mt against $122/mt previously, CFR China, reflecting the same premium ascribed to the product in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, when considering their iron units, is now 5.9 percent, the lowest in a one year period, against 6.6 percent previously, reflecting the interest, at such price level, by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the reference prices are now $92/mt for the ore and $106/mt for the pellets against respectively $87/mt and $100/mt previously, ex-works, no taxes included.