The price of Brazilian high-grade iron ore, 65 percent iron contents, is $123/mt today, against $118/mt on May 5, CFR China conditions.
According to analysts, the increase reflects renewed hopes for increasing demand for the ore from China, derived from indications by the local authorities that they could give additional support to the civil construction sector in its current difficulties.
The iron ore prices could also be positively impacted by high prices of steel products, with indications that the HRC price increased by 5.1 percent in the Shanghai Futures Exchange.
The Brazilian high-grade product has now a premium of 8.7 percent in relation to the 62 percent Australian iron ore, against 9.6 percent previously, still reflecting a relatively good demand for high-grade products.
The export price of blast furnace grade pellets is now $142/mt, CFR China, against $137/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 $100/mt for the iron ore and $119/mt for the pellets, against respectively $94/mt and $113/mt previously, ex-works, no taxes included.
In April, Brazil exported 23.43 million mt of iron ore (pellets excluded) and 1.77 million mt of pellets, against respectively 25.02 million mt and 2.21 million mt in March.
The iron ore exports were destined to Asia (18.55 million mt, of which 15.87 million mt to China), the Middle East (2.23 million mt), Europe (1.69 million mt), South America (690,100 mt) and Mexico (274,000 mt).
The pellets exports were destined to Asia (770,200 mt), Argentina (262,600 mt), the US (259,900 mt), Europe (248,700 mt), Libya (150,000 mt) and Trinidad and Tobago (76,200 mt).
