The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $110/mt today against $112/mt on April 7, CFR China.
The price recovered from a low of $108/mt during the week, after a decline of $4/mt following the start of the US-China tariffs war.
The price today returns to the level of the first week of 2025.
The war tariffs took a heavy toll on the metals market, despite the short relief after a 90-day truce was announced by the US.
According to analysts, the resilient demand for iron ore, derived from high levels of steel production in China, have helped to reduce losses. Expectations for incentive measures from Chinese authorities are also having a positive impact on prices.
The China-US dispute is expected to remain impacting iron ore prices in the short term.
The export price of blast furnace grade pellets is now $123/mt, against $130/mt previously, CFR China, reflecting a lower premium now 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 7.1 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 $85/mt for the iron ore and $98/mt for the pellets against respectively $86/mt and $104/mt previously, ex-works, no taxes included.
Such prices were positively impacted by lower Brazil-China freight rates, as the domestic price is based on FOB prices, having CFR China as the reference. For pellets, the price was also affected by the lower premium in relation to the equivalent sinter feed fines.