The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $130/mt today, against $128/mt on September 5, CFR China conditions.
According to analysts, iron ore demand remains high, with Chinese imports of iron ore increasing as steel mills are supported by measures adopted by authorities for the construction sector.
When considering a seven-day moving average, the price of the high-grade iron ore has remained in an uptrend since August 14.
The Brazilian high-grade product has now a premium of 2.7 percent in relation to the 62 percent Australian iron ore, against 3.5 percent previously, now the lowest figure since July 2022, remaining far lower than the historical average. The trend reflects the lower importance currently ascribed by the 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 $147/mt, CFR China, against $146/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 $107/mt for the iron ore and $125/mt for the pellets, against $106/mt and $124/mt previously, ex-works, no taxes included.
In August, Brazil exported 35.55 million mt of iron ore (pellets excluded) and 1.97 million mt of pellets, against respectively 29.78 million mt and 2.72 million mt in July.
The main destinations of the iron ore were Asia (30.98 million mt, of which 27.46 million mt to China), the Middle East (1.81 million mt), Europe (1.68 million mt) and South America (798,100 mt).
For pellets, the main destinations were Africa (637,300 mt), Asia (483,700 mt), Europe (335,600 mt) and South America (261,900 mt), Trinidad and Tobago (170,100 mt) and the US (77,200 mt).