The price of Brazilian high-grade iron ore, 65 percent iron contents, is $133/mt today, against $130/mt on September 11, CFR China conditions.
Sources say the increase reflects the decision by Chinese authorities to announce measures to reinforce the economy, regardless of the reduced steel production achieved in August. Such measures include the reduction of reserves that the banks must hold, increasing the liquidity in the economy and indirectly supporting the construction sector.
When considering a seven-day moving average, the price of the high-grade iron ore remains in uptrend since August 14.
Despite the increasing price, the Brazilian high-grade product has now a premium of 1.4 percent in relation to the 62 percent Australian iron ore, against 2.7 percent previously, now the lowest figure in recent years. Sources say this reflects the reduced importance currently ascribed by integrated steel producers to the higher productivity of high-grade products in blast furnaces.
The export price of blast furnace grade pellets is now $153/mt, CFR China, against $147/mt previously, reflecting a stable premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are estimated at $111/mt for the iron ore and $130/mt for the pellets, against $107/mt and $125/mt previously, ex-works, no taxes included.
