The price of Brazilian high-grade iron ore, 65 percent iron contents, is $122/mt today, stable from July 3, CFR China conditions.
Remaining in a scenario of price variations, with the price of the high-grade product actually declining by $4.05/mt from yesterday, the market now reflects fears that the demand for iron ore could face a reduction due to environmental measures in China, with lower crude steel production in the country.
The Brazilian high-grade product has now a premium of 7.7 percent in relation to the 62 percent Australian iron ore, against 5.2 percent previously, now in line with the historical average.
The export price of blast furnace grade pellets is also stable at $140/mt, CFR China, reflecting an also 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 $97/mt for the iron ore and $115/mt for the pellets, against $98/mt and $116/mt previously, ex-works, no taxes included, in a small decline reflecting variations of ocean freight rates, as the domestic prices are based on the FOB prices.
In June, Brazil exported 32.58 million mt of iron ore (pellets excluded) and 1.83 million mt of pellets, against respectively 32.97 million mt and 2.22 million mt in May.
The main destinations of the iron ore in June were Asia (29.04 million mt, of which 25.73 million mt to China), Europe (1.73 million mt), the Middle East (1.13 million mt) and South America (535,300 mt).
The main destinations of the pellets were Asia (465,100 mt), the US (442,300 mt), Europe (389,100 mt), South America (229,900 mt) and Qatar (166,600 mt), while small volumes were shipped to Mexico and Trinidad and Tobago.