With a second increase over the week in the Chinese spot market, the price of ex-Brazil 65 percent iron sinter feed fines is now $176/mt, against $166/mt earlier this week, CFR China conditions. Sources ascribed the increase to strong trading activity in the physical market, chiefly in Chinese ports.
Conversely, the premium of the high-grade ore over the Australian 62 percent ore grade, when considering their iron units, stands now at 6.6 percent, comparable to 8.4 percent earlier this week, the lowest since January, 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 several months.
The price of the ex-Brazil blast furnace grade pellet, under the same conditions, is now $222/mt, against $212/mt late last week, under the same conditions.
In the Brazilian domestic market, the prices are estimated now at $132/mt for the ore and $178/mt for the pellets, ex-works, no taxes included, against $122/mt and $168/mt, respectively, late last week.
Iron ore prices could be sustained by increased demand from China, as sources believe that China will increase its steel production if iron ore miners increase their production, maintaining a stable supply/demand balance and avoiding a return of iron ore prices to the high levels seen until earlier in July.