Brazilian iron ore with 65 percent iron content is currently priced at $115 a metric ton (mt) , CFR China, up from $114/mt a week earlier, market sources told SteelOrbis.
Sources said the increase reflects concerns over a possible ore shortage, as BHP could face a stoppage at Port Hedland, Australia, after the company and workers’ representatives failed to reach an annual labor agreement. Workers have announced a stoppage set for July 15.
Blast furnace-grade pellets are being exported at $133/mt, compared with $132/mt previously, maintaining the same premium over same-grade sinter feed fines.
Market sources said the premium for Brazilian 65 percent iron ore over Australian 62 percent iron ore remains stable at 8.3 percent, a relatively low level that indicates weaker demand for higher-grade materials.
In Brazil’s domestic market, reference prices now stand at $82/mt for iron ore and $100/mt for pellets, up from $81/mt and $99/mt, respectively, on an ex-works basis, excluding taxes.
