The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $110/mt today, a level last seen in November 2021, against $122/mt on July 13, CFR China conditions.
According to analysts, the iron ore price trend is reflecting a loose supply/demand balance, with reduced iron ore offers from Australia and possibly from Brazil, while steel producers are also reducing output in different regions.
Nonetheless, the expectations are for an average price for the Brazilian high-grade product around $125/mt during the second half of the year, against $160/mt during the same period in 2021.
Similarly, the price of blast furnaces grade pellets decreased to $137/mt from $150/mt previously, with 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 $77/mt for the iron ore and $104/mt for the pellets, against respectively $93/mt and $117/mt previously, ex-works, no taxes included.
The premium of the high-grade ore, in relation to the 62 percent Australian iron ore, is now 8.9 percent, from 7.0 percent previously, improving but still reflecting reduced demand for high-grade products.