The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $121/mt on June 5, against $126/mt on June 3, CFR China.
Reaching the fourth consecutive day of decline, the price of iron ore remains under pressure by reduced demand for steel products in China, coupled to perspectives of increased global iron ore shipments destined to the country.
The export price of blast furnace grade pellets is $133/mt, against $137/mt previously, reflecting a stable premium ascribed to the product, in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, when considering their iron units, is 9.2 percent, against 9.3 percent previously, reflecting the interest by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the prices are estimated at $94/mt for the iron ore and $106/mt for the pellets, against respectively $98/mt and $109/mt previously, ex-works, no taxes included.
This week, the lower iron ore price has negatively affected the market capitalization of the Brazilian miner Vale, as measured by the price of its shares in the São Paulo Stocks Exchange.
For the first time in months, Vale is ranking third in Brazil when considering market value, losing its usual second place to the Itaú bank, while the first place remains with the oil company Petrobras.