The price of 65 percent iron sinter feed fines of Brazil has reached $256/mt, against $248/mt late last week, CFR China conditions.
Following a week of rangebound oscillations, the price is now among the highest in two months, reflecting chiefly falling steel inventories in China.
Sources tell SteelOrbis they believe the increase also reflects the reduction by Chinese authorities of reserves in the country’s banking system, as an alternative to increase credit to small companies. In their view, the move should increase demand for commodities, including iron ore.
With the increase, the premium of the iron unit of the high-grade Brazilian ore, in relation to the iron unit of the Australian 62 percent ore, stands at 11.4 percent, reflecting the demand for products with higher productivity and low emissions in blast furnaces.
With increased premium also for blast furnace grade pellets, the price of the Brazilian product has reached $324/mt, also CFR China conditions, also among the highest in two months.
In the Brazilian domestic market, the prices are $215/mt and $280/mt for the high-grade ore and for pellets, respectively, ex-works, no taxes included, against $220/mt and $289/mt previously.
Preliminary figures from customs maintain expectation of combined exports of iron ore and pellets from Brazil exceeding 30 million mt in July. In June the volume was 33.68 million mt.