The price of Brazilian high-grade iron ore, 65 percent iron contents, is $129/mt today, against $130/mt on July 14, CFR China conditions, with small variations during the period.
Remaining in a scenario of uncertainties, the price is supported by expectations of more support to the real estate and civil construction markets by Chinese authorities, while concerns of excess of iron ore offers and low demand for the product are playing a negative role.
Analysts at UBS bank have also mentioned that iron ore prices were negatively affected by the high stocks of the product at the ports of the Brazilian miner Vale.
In their view, there was an accumulation of stocks during the first quarter of the year, due to operational problems at the ports, resulting in higher shipments during the second quarter, negatively affecting the prices during a seasonally weaker period for the iron ore demand.
When considering a seven-day moving average, the price of the high-grade ore is the highest since April 25, 2023.
The Brazilian high-grade product has now a premium of 6.7 percent in relation to the 62 percent Australian iron ore, against 7.3 percent previously, remaining in line with the historical average.
The export price of blast furnace grade pellets is now $147/mt, CFR China, against $148/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 $106/mt for the iron ore and $123/mt for the pellets, against $105/mt and $123/mt previously, ex-works, no taxes included.