The price of the Brazilian high-grade iron ore (65 percent iron contents) is $127/mt today, against $133/mt on July 01, CFR China conditions.
According to analysts, prices are expected to decline further during the second half of the year, as many steel producers are cutting production, while the iron ore supply is set to improve over the period.
Similarly, the price of blast furnaces grade pellets decreased to $152/mt from $158/mt previously, with a stable premium ascribed to the product, in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are now estimated at $94/mt for the iron ore and $118/mt for the pellets, against respectively $101/mt and $125/mt previously, ex-works, no taxes included.
The premium of the high-grade ore, in relation to the 62 percent Australian iron ore, when considering their iron units, is now 8.6 percent, from 9.0 percent previously, still reflecting reduced demand for high-grade products, although maintaining a high figure in historical terms.
In June, Brazil exported 30.85 million mt of iron ore (pellets excluded) and 1.24 million mt of pellets, against respectively 23.37 million mt and 2.15 million mt in May.
The destinations of the iron ore in June were: Asia (26.11 million mt, of which 22.41 million mt to China), Europe (2.09 million mt) and the Middle East (2.04 million mt), while smaller volumes were shipped to Mexico, South America and Africa.
The destinations of the pellets were South Korea (365,300 mt), Argentina (211,200 mt), Japan (257,100 mt), Egypt (169,000 mt), the US (153,100 mt) and Italy (89,100 mt).