The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $121/mt today, CFR China, stable from March 19.
Such stability reportedly reflects a divided market, with hopes of increased demand, amid doubts related to prospects for the demand for steel products in China and the negative impact on prices by the current high level of iron ore stocks.
Sources mentioned that the higher margins, currently achieved by the integrated steel producers in China, could positively impact demand and prices for iron ore. Higher steel demand is also expected from sectors not linked to real estate activities.
The export price of blast furnace grade pellets is also stable at $134/mt, reflecting a stable premium ascribed to the product, in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, is now 6.1 percent, against 6.6 percent previously, still reflecting the interest by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the prices are estimated at $87/mt for the iron ore and $100/mt for the pellets, roughly stable from respectively $86/mt and $100/mt previously, ex-works, no taxes included.
