The price of Brazilian high-grade iron ore, 65 percent iron contents, declined to $131/mt from $143/mt two days ago, CFR China conditions. Sources ascribe the price plunge to the introduction of stricter emissions restrictions in the Chinese steelmaking hub of Tangshan, resulting in reduced iron ore demand that is negatively affecting prices in the ore’s seaborne market.
The swift decline could also reflect increases in discharging iron ore at Chinese ports after the clearing of port congestions, sources say, which has increased the availability of the product and negatively affected its price.
Under a similar trend, the price of the Brazilian blast furnace grade pellet is now $178/mt, against $190/mt previously, CFR China conditions.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 11.2 percent, against 11.7 percent previously, still in a level reflecting the high demand for its high performance in blast furnaces.
In the Brazilian domestic market, the prices are estimated at $80/mt for the ore and $127/mt for the pellets, ex-works, no taxes included, against $92/mt and $139/mt previously, respectively, in line with the movements of the international prices of the ore.
Preliminary numbers from customs are pointing to a lower volume of combined iron ore and pellets exports from Brazil in October, when compared to the 33.68 million mt exported in September.