The price for Brazilian high-grade iron ore, with 65 percent iron content, was $114/mt on July 15, against $106/mt one week before, CFR China.
According to analysts, the increase reportedly reflects the shortage of that grade ore, as the Brazilian miner, Vale, is reducing its production and increasing the availability of lower grade ores, in its strategy to serve the Asian markets.
The increase also reflects positive economic data unveiled by the Chinese authorities, compensating the persistent weakness of the country’s real estate sector.
The export price of blast furnace grade pellets is now $127/mt, against $119/mt last week, CFR China, maintaining the same premium relative to sinter feed fines.
The premium for Brazilian high-grade ore, containing 65 percent iron, relative to Australian 62 percent iron ore, based on their iron units, increased to 10.5 percent from 5.8 percent previously, reaching the highest figure since August 2024. Such an increase reflects, as expected, the higher price differential between the two grades, and also the interest of integrated producers for the performance of premium ores when processed in blast furnaces.
In the Brazilian domestic market, reference prices are now $92/mt for the ore and $105/mt for pellets, up from $82/mt and $95/mt, respectively, ex-works and excluding taxes. These prices have been positively affected also by lower Brazil-China freight rates, as the domestic price in Brazil is based on the FOB quotation, using CFR China as the reference.