Brazilian iron ore with 65 percent iron content is currently priced at $110/metric ton (mt), CFR China, down from $113/mt this past week, the lowest price recorded by SteelOrbis since July 2025.
The price movement reflects several factors including a short-term 16 percent increase in global iron ore shipments to China, a 6 percent rise in volumes arriving at Chinese ports, as well as reduced purchases by Chinese steel producers, sources said. Mills currently are buying only to meet immediate needs, they said, as high inventories of steel products reflect seasonally weaker domestic demand.
Blast furnace-grade pellets are exported at $128/mt, down from $131/mt previously, while keeping the same premium over same-grade sinter feed fines.
Market sources said Brazilian 65 percent iron ore now carries a 10.9 percent premium over Australian 62 percent iron ore, compared with 9.3 percent previously, in line with historical levels, pointing to a stable demand for higher grade materials.
In Brazil's domestic market, reference prices now stand at $73/mt for iron ore and $90/mt for the pellets, against a previous price of $77/mt and $95/mt, respectively, on an ex-works basis and excluding taxes.
Sources said pricing was negatively affected by a higher Brazil-China sea freight rate, as the domestic price is based on FOB conditions, having CFR China as the reference.
According to ship broker Banchero Costa, the Tubarão-Qingdao sea freight rate -the benchmark route for Brazil-China iron ore transportation- stands today at $34.68/mt, 40 percent higher on yearly basis, an increase attributed to the higher bunker oil costs resulting from continued uncertainty in the Middle East.
