Brazilian 65% Fe iron ore fell from $124/mt to $118/mt CFR China, recording its steepest weekly drop in years.
Analysts attribute declining prices to several factors, including the delivery of the first Simandou iron ore cargo to China, comparable in quality to the Brazilian ore, and reports indicating rising stockpiles of iron ore at 35 Chinese ports.
Sources indicate that Simandou's effect on iron ore prices will be minimal in 2026, since its output is expected to reach only 16 million mt, just one percent of the transoceanic market. At full capacity, it is expected to produce 120 million mt per year.
The export price of blast furnace grade pellets is now $136/mt, against $142/mt previously, CFR China, reflecting a stable premium relative to equivalent sinter feed fines.
The premium for Brazilian high-grade ore with 65 percent iron over Australian ore containing 62 percent iron is currently 7.2 percent, up from 6.8 percent previously.
In the Brazilian domestic market, reference prices are now $94/mt for the ore and $113/mt for pellets, against respectively $99/mt and $117/mt previously, ex-works and excluding taxes.
