The price of Brazilian high-grade iron ore, with 65 percent iron content, is now $105/mt, compared to $107/mt on May 28, CFR China.
Despite a punctual price recovery from yesterday, the expectations for a seasonal lower demand from China remains negatively affecting iron ore prices in the short term, although sharp declines are unlikely, unless fundamentals worsen further.
The export price of blast furnace grade pellets has decreased to $118/mt from $120/mt previously, CFR China, maintaining the same premium relative to sinter feed fines.
The premium of Brazilian high-grade ore, 65 percent iron ore, in relation to Australian 62 percent iron ore, based on their iron units, is now 4.8 percent, down from 5.9 percent previously, marking the lowest figure in recent years, pointing to a low level of interest from integrated steel producers for higher productivity and lower emissions of premium ores when processed in blast furnaces. Such low premium was the base for the decision of the Brazilian miner, Vale, to develop a low-grade blend to serve Chinese and other Asian markets.
In the Brazilian domestic market, reference prices are now $83/mt for the ore and $97/mt for pellets, down respectively from $85/mt and $98/mt previously, ex-works, no taxes included.