The price of the Brazilian high-grade ore, 65 percent iron contents, increased to $143/mt from $142/mt last Thursday, CFR China conditions. The small increase is ascribed by sources to a short-term positivity in demand for iron ore in the seaborne trading market, maintaining however the oscillating pattern seen over the last few weeks.
Sources also mentioned a current lower pace for iron ore exports from Brazil and perspectives for diverting steel production from electric arc furnace plants to the blast furnaces of the integrated producers, due to energy deficit in China, which is positively affecting iron ore prices.
Similarly, the price of the Brazilian blast furnace grade pellet is now $190/mt, against $188/mt previously, under the same conditions.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 11.7 percent, against 15.7 percent previously, the lowest figure in two months, but still a level reflecting the demand for its high performance in blast furnaces, when considering historical terms.
In the Brazilian domestic market, the prices are estimated at $92/mt for the ore and $139/mt for the pellets, ex-works, no taxes included, against $91/mt and $137/mt previously, respectively, an increase in line with the movements of the international prices of the ore.