The price of Brazilian high-grade iron ore exports, 65 percent iron contents, is $109/mt today, against $110/mt on July 15, CFR China conditions.
According to analysts, the iron ore prices trend is still reflecting a loose supply/demand balance, with undefined volumes of iron ore offered and lower steel production, with doubts now arising from the announcement by the Chinese authorities that the country will have a state-owned institution that will deal with all iron ore related issues, from investments in African mines to acquisitions from global iron ore suppliers.
The price of blast furnaces grade pellets is stable at $137/mt, with the same premium ascribed to the product, in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are now estimated at $76/mt for the iron ore and $104/mt for the pellets, against respectively $77/mt and $104/mt previously, ex-works, no taxes included.
The premium of the high-grade ore, in relation to the 62 percent Australian iron ore, is now 7.8 percent, from 8.9 percent previously, still reflecting reduced demand for high-grade products.