The price of Brazilian high-grade iron ore, 65 percent iron contents, is $121/mt today, against $116/mt on August 15, CFR China conditions.
According to sources, the increase reflects information that steel producers in the Hebei province of China have not reduced their production so far, despite perspectives for reduced steel demand in the long run, and limitation of the country`s steel production in 2023 to the volume produced in 2022.
Decreased Chinese iron ore imports from Brazil and Australia have also reportedly played a role in the rise of the price of the product.
The Brazilian high-grade product has now a premium of 5.8 percent in relation to the 62 percent Australian iron ore, the lowest in two months, against 7.8 percent previously.
The export price of blast furnace grade pellets is now $139/mt, CFR China, against $134/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 $98/mt for the iron ore and $116/mt for the pellets, against $94/mt and $111/mt previously, ex-works, no taxes included.
In August, the combined exports of iron ore and pellets from Brazil are expected to decline from the 32.05 million mt exported in July.
