The price of Brazilian high-grade iron ore, 65 percent iron contents, is $120/mt today, against $116/mt on May 31, CFR China conditions.
The increase reflects higher demand for steel products by the civil construction sector in China, coupled with higher-than-expected activity by the manufacturing industry in the country, and problems associated with railroad transportation of iron ore in South Africa, reducing the supply in the seaborne market.
The Brazilian high-grade product has now a premium of 6.4 percent in relation to the 62 percent Australian iron ore, against 7.8 percent previously, now reflecting a lower than historical average premium for high-grade iron ore products.
The export price of blast furnace grade pellets is now $138/mt, CFR China, against $134/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 $97/mt for the iron ore and $115/mt for the pellets, against $92/mt and $110/mt previously, ex-works, no taxes included.
In May, the combined exports of iron ore and pellets from Brazil reached 35.18 million mt, against 25.20 million mt in April.
The volume exported in May is the monthly largest since September 2022, when 36.39 million mt were exported.
According to analysts, the large volume of May exports reflects a combination of factors, including the low volume exported during the first quarter, due to weather conditions, postponing shipments to the following months, the maintenance of equipment at Vale’s operations in the north of the country during the first quarter and good weather conditions for exports in May.