The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $115/mt today, roughly stable since March 25, CFR China.
The iron ore price remains negatively affected by the possible impact of the import tariff war on steel products exported by China.
The iron ore price is also negatively affected by recent information that iron ore exports from Brazil and from Australia have increased in March, while an increased volume of iron ore arrivals at Chinese ports in March are also playing a negative role on prices.
Conversely, the resilient domestic demand in China for steel products maintains support to iron ore prices.
The export price of blast furnace grade pellets is now $134/mt against $133/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 7.2 percent against 7.4 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 $88/mt for the iron ore and $106/mt for the pellets against respectively $87/mt and $106/mt previously, ex-works, no taxes included.
In February, Brazil exported 24.263 million mt of iron ore (pellets excluded) and 1.145 million mt of pellets. Initial data continues to indicate a rise in volumes for March.