Brazilian high-grade iron ore (65% Fe) is now priced at $122/mt, down from $123/mt last week and the prior week, CFR China.
Small oscillations during the period are attributed to reduced demand in China for finished steel products, partially compensated by the expected restocking of the ore, ahead of China’s national holidays.
The export price of blast furnace grade pellets is now $141/mt, stable from last week, CFR China, reflecting the same premium relative to equivalent 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, declined to 10.1 percent from 10.9 percent previously, still maintaining a high premium in historical terms, reflecting the interest of steel producers for the high performance of premium products when processed in blast furnaces.
In the Brazilian domestic market, reference prices are now $95/mt for the ore and $114/mt for pellets, against respectively $96/mt and $115/mt previously, ex-works and excluding taxes.
In August, Brazil exported a combined volume of 40.21 million mt of iron ore and pellets. Preliminary indications, based on figures from the first three weeks of September, are pointing to a stable volume for the whole of the month.