The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $122/mt today, against $115/mt on July 25, CFR China conditions.
According to sources, the iron ore price increase reflects perspectives for economic recovery in China during the third quarter of the year, coupled with the announcement of support, also in China, of the country’s civil construction sector.
Expectations are maintained for increased iron ore prices during the second half of 2022, and an average price for the Brazilian high-grade product around $125/mt during the period.
The price of blast furnaces grade pellets is now $150/mt, against $143/mt previously, with the same premium ascribed to the product, in relation to the equivalent sinter feed fines, with perspectives of a declining premium over the next weeks.
In the Brazilian domestic market, the prices are now estimated at $88/mt for the iron ore and $116/mt for the pellets, against respectively $82/mt and $110/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 4.2 percent, from 6.9 percent previously, the lowest figure since December 2019, still reflecting reduced demand and possibly a downtrend for the high-grade products premium.