The price of Brazilian high-grade iron ore, 65 percent iron contents, declined to $142/mt from $148/mt last Friday, CFR China conditions. Sources say the decline is due to reduced steel prices and lower demand, although prices have maintained an oscillating pattern seen over the last few weeks.
Meanwhile, the price of the Brazilian blast furnace grade pellet is now $188/mt, against $189/mt previously, under the same conditions, a much smaller reduction derived from the higher premium of the product in relation to the equivalent sinter feed fines.
The higher pellet premium reflects sintering restrictions in China, expected to be implemented by the end of this month.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 15.7 percent, against 12.7 percent previously, an increase also reflecting the demand for its high performance in blast furnaces
In the Brazilian domestic market, the prices are estimated at $91/mt for the ore and $137/mt for the pellets, ex-works, no taxes included, against $104/mt and $145/mt previously, respectively, a reduction also reflecting increased sea freight rates, as the domestic price has the FOB price as a base for reference.