The price of Brazilian high-grade ore, 65 percent iron contents, increased to $146/mt from $139/mt three days ago, CFR China conditions, reflecting intense demand after the end of the Chinese holiday period.
Similarly, the price of Brazilian blast furnace grade pellet is now $187/mt, against $180/mt previously, under the same conditions.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 12.9 percent, against 13.3 percent previously, maintaining a high value that reflects the demand for its high performance in blast furnaces
In the Brazilian domestic market, iron ore prices are estimated at $102/mt for the ore and $143/mt for the pellets, ex-works, no taxes included, against $95/mt and $136/mt previously, respectively.
According to sources, Brazilian iron ore miner Vale sees the current level of prices as reasonable, with perspectives of stabilization, as the company does not believe in further iron ore price reductions in the short term.
The company’s expectations reportedly include a relatively balanced market for the rest of 2021 and 2022, with the ex-China iron ore demand growth currently surprising on the upside.