Brazilian high-grade ore price continues to decline

Tuesday, 31 August 2021 22:47:29 (GMT+3)   |   Sao Paulo
       

The price of the 65 percent iron sinter feed fines of Brazil in the Chinese spot market is now $172/mt, against $176/mt late last week, CFR China conditions.

The price of the Brazilian blast furnace grade pellets, in a similar trend, declined from $222/mt to $217/mt, under the same conditions.

Sources ascribe the decline to rumors of additional steel production cuts to be determined by Chinese authorities, this time in the province of Guangxi, effective from November.

The premium of the high-grade ore over the Australian 62 percent ore grade, when considering their iron units, stands now at 6.8 percent, little changed from 6.6 percent last week, still indicating that the high performance of the ore in blast furnaces is not valued by integrated producers as it has been over the last months.

There are rumors that Vale is currently shipping a higher than usual volume of low-grade ores, in a move seen by sources as an attempt to reduce the availability of the premium product and increase its price, while destocking its large reserves of lesser-grade ore. 

In the Brazilian domestic market, the prices are estimated now at $128/mt for the ore and $173/mt for the pellets, ex-works, no taxes included, against $132/mt and $178/mt, respectively, late last week.


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