The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $129/mt today, CFR China, against $123/mt on April 12.
The price is the highest in more than one month, reflecting, in the view of sources, apparent improvements in the Chinese domestic steel market, coupled to expectations of a high volume of iron ore restocking before the country’s holiday on May 1.
Sources mentioned also that the iron ore demand in China should remain solid, at least in the short term, as local integrated steel producers are showing intentions to increase their production after improvements in their margins and in the downstream demand; the manufacturing industry is showing a strong demand for steel products, compensating for the relatively weak demand from the civil construction sector.
The export price of blast furnace grade pellets is now $142/mt, against $135/mt previously, reflecting a stable 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, is now 6.0 percent, against 5.3 percent previously, reflecting the interest 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 prices are estimated at $100/mt for the iron ore and $113/mt for the pellets, against respectively $95/mt and $108/mt previously, ex-works, no taxes included. Such prices were negatively affected by higher Brazil-China freight rates, as the domestic price of the ore is based on FOB prices, having CFR China as the reference.
