The price of Brazilian high-grade iron ore, 65 percent iron contents, is $142/mt today, CFR China, stable from January 16.
According to sources, China’s purchasing managers’ index (PMI) of its real estate sector has reached a six-month high in December, pointing to perspectives that the current downtrend of the sector could be ending. Additionally, new support measures could be approved by authorities, raising expectations for increased demand for steel products and for iron ore as consequence.
The export price of blast furnace grade pellets is also stable at $157/mt, CFR China, 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, now stands at 4.2 percent, against 4.3 percent previously, still reflecting increased interest by the integrated steel producers for the higher productivity of the premium ores.
In the Brazilian domestic market, the prices are estimated at $117/mt for the iron ore and $132/mt for the pellets, against respectively $109/mt and $124/mt previously, ex-works, no taxes included, in an increase now reflecting lower sea freight rates, as the domestic price is based on FOB conditions, having CFR China as reference.
