The price of the 65 percent iron sinter feed fines of Brazil declined to $204/mt from $214/mt late last week, CFR China conditions. Over the last two weeks, the decline total has reached $32/mt, and the current price level marks the lowest quotation since mid-May.
Regardless of the decline of all iron ore grade prices, the premium of the high-grade ore over the Australian 62 percent ore grade, when considering their iron units, has reached 13.1 percent, the highest figure in two months, reflecting a resilient demand for the high performance of the high-grade product in blast furnaces.
Following a similar pattern, the price of the Brazilian blast furnace grade pellet is now $272/mt, against $308/mt two weeks ago.
In the Brazilian domestic market, the prices are $168/mt for the ore and $237/mt for the pellets, ex-works, no taxes included, against $205/mt and $273/mt, respectively, two weeks ago.
According to analysts, the decline reflects a shift of perspectives that previously indicated steel production restrictions in China would not be implemented in total; expectations now are for full production restrictions.
In July, Brazil exported 29.91 million mt of iron ore (pellets excluded) and 1.78 million mt of pellets. Asia was the main destination of the iron ore (25.36 million mt, of which 21.67 million mt to China), followed by Europe (2.16 million mt) and the Middle East (1.84 million mt), while small volumes were shipped to Mexico and Argentina.
The pellets were destined to Japan (572,600 mt), the US (435,100 mt), Argentina (197,000 mt), Egypt (169,500 mt) and Libya (150,000 mt), small volume shipped to Trinidad and Tobago, Spain and the Netherlands.