The price of Brazilian high-grade ore, 65 percent iron contents, has reached $136/mt in the Chinese spot market, against $131/mt earlier in this week.
In a similar uptrend, the price for Brazilian blast furnace grade pellets is now $170/mt, against $165/mt late last week.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore is now 16.4 percent, against 14.9 percent earlier this week, maintaining a high level that reflects the demand for its high performance in blast furnaces.
The price of the high-grade ore has increased despite reported speculative interest that temporarily diverted to low and mid-grade iron ore fines.
Sources mentioned that the current increase of the high-grade ore price, along with the price of other grades, is demand-driven, which is usually uncertain and difficult to forecast r how long it will last. For the supply side, the scenario is clearer, with indications of firm availability in the seaborne market despite indications of lower volumes being exported from Brazil recently.
In the Brazilian domestic market, the prices are estimated at $96/mt for the ore and $130/mt for the pellets, ex-works, no taxes included, against $91/mt and $125/mt previously, respectively.