The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $115/mt today, against $116/mt on March 18, CFR China.
Prices are negatively affected by rumors of production cuts in the Chinese steel industry, while the resilient demand for steel products in the country maintains the support to iron ore prices.
The export price of blast furnace grade pellets is now $133/mt, against $134/mt previously, CFR China, 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, when considering their iron units, is now 7.4 percent against 7.7 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 $87/mt for the iron ore and $106/mt for the pellets against respectively $90/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 is based on FOB conditions, having CFR China as the reference.
The Tubarão (Brazil) – Qingdao (China) freight rate has reached $24.36/mt last week, the highest value since October 2024.
In February, Brazil exported 24.263 million mt of iron ore (pellets excluded) and 1.145 million mt of pellets. Initial data indicates a rise in volumes for March.