The price of Brazilian high-grade iron ore, 65 percent iron contents, is $128/mt today, against $125/mt on August 29, CFR China conditions.
According to sources, market players remain optimistic about measures adopted by Chinese authorities to support the economy, and while measures to reduce the steel production were not announced so far, analysts believe that such announcements will be made soon.
When considering a seven-day moving average, the price of the high-grade iron ore remains in uptrend over the last three weeks.
The Brazilian high-grade product has now a premium of 3.5 percent in relation to the 62 percent Australian iron ore, against 4.9 percent previously, now the lowest figure in a one-year period and far lower than the historical average, reflecting the lower importance currently ascribed by integrated steel producers to the improved productivity in blast furnaces, characteristic of the higher-grade iron ores.
The export price of blast furnace grade pellets is now $146/mt, CFR China, against $143/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 $106/mt for the iron ore and $124/mt for the pellets, against $101/mt and $119/mt previously, ex-works, no taxes included.
In August, Brazil exported a combined iron ore and pellets volume of 37.51 million mt, against 32.05 million mt in July, an increase reflecting a higher per-day volume shipped during the last two weeks of August.