The price of Brazilian high-grade iron ore, 65 percent iron contents, has reached $131/mt in the Chinese spot market, against $128/mt late last week.
In a similar trend, the price of the Brazilian blast furnace grade pellet is now $165/mt, against $161/mt late last week.
The premium of the high-grade ore, in relation to the 62 percent iron Australian product is now 14.9 percent, against 19.3 percent previously, still a high level, indicating he demand for its high performance in blast furnaces.
Although the price increase reflects firm prices in the Chinese futures market, sources mentioned that expectations of a low pace in iron ore exports from Brazil, particularly during the third week of September, have raised fears of future undersupply of the ore, affecting the supply/demand balance.
Expectations for September are now for a combined iron ore and pellets exports from Brazil around 25 million mt, against 31.69 million mt in August.
In the Brazilian domestic market, iron ore prices are estimated at $91/mt for the ore and $125/mt for the pellets, ex-works, no taxes included, against $88/mt and $121/mt previously, respectively.