The price of Brazilian high-grade iron ore, 65 percent iron contents, is $126/mt today, against $120/mt on June 5, CFR China conditions.
The increase is reportedly supported by expectations of traders for more incentives by Chinese authorities to the country’s economy, in view of the poor economy data recently unveiled.
A scenario persists in relation to the reduced supply of the iron ore of South Africa to the seaborne market, due to problems associated with railroad transportation in the country.
The Brazilian high-grade product has now a premium of 5.2 percent in relation to the 62 percent Australian iron ore, against 6.4 percent previously, reflecting a lower than historical average premium for high-grade iron ore products.
The export price of blast furnace grade pellets is now $144/mt, CFR China, against $138/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 now estimated at $102/mt for the iron ore and $115/mt for the pellets, against $97/mt and $115/mt previously, ex-works, no taxes included.
In May, Brazil exported 32.97 million mt of iron ore (pellets excluded) and 2.22 million mt of pellets. The main destinations of the iron ore were Asia (27.13 million mt, of which 22.03 million mt to China), the Middle East (2.64 million mt), Europe (2.00 million mt) and South America (926,200 mt).
The main destinations of the pellets were Asia (558,900 mt), Europe (419,100 mt), Argentina (346,100 mt), the US (336,500 mt), Trinidad and Tobago (239,300 mt) and Egypt (168,000 mt).