Brazilian iron ore with a 65 percent iron content is now priced at $114/mt, CFR China, compared with $117/mt one week earlier, market insiders told SteelOrbis.
Sources said the impact of blast furnace maintenance in China has intensified this week, cutting pig iron production by an estimated 1.1 million mt. This has reduced demand for iron ore and, as a result, pressured prices lower. Further declines in pig iron output are expected in the short term, they said.
Blast furnace grade pellets are exported at $132/mt, against $135/mt previously, showing the same premium over same-grade sinter feed fines.
Market sources said the premium for Brazilian 65 percent iron ore over Australian 62 percent ore rose to 10 percent from 8.7 percent on an iron-unit basis, indicating strong demand for higher-grade materials.
In the Brazilian domestic market, reference prices are now $81/mt for the ore and $99/mt for the pellets, against respectively $77/mt and $95/mt previously, on an ex-works basis, no taxes included.
