The price of Brazilian high-grade iron ore, 65 percent iron contents, is $140/mt today, CFR China, against $145/mt on January 31 and $150/mt on January 29, achieving now the lowest value in two weeks.
The downtrend reportedly reflects increased concern by market players with the recovery of the real estate sector in China, coupled with perspectives for increased pressure to reduce emissions from the local steel production, pointing to reduced steel production and lower demand for iron ore.
The export price of blast furnace grade pellets is now $155/mt, against $161/mt previously, reflecting a stable premium ascribed to the product in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, is now 4.3 percent, against 4.9 percent previously, still reflecting more interest by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the prices are estimated at $116/mt for the iron ore and $131/mt for the pellets, against respectively $119/mt and $134/mt previously, ex-works, no taxes included.