The price of Brazilian high-grade iron ore, with 65 percent iron content, is now $104/mt, compared to $105/mt last week, CFR China.
Despite resilient Chinese demand and prospects for reduced commercial tensions between the US and China, the price remains negatively affected by expectations of increased product offerings by major producers.
The export price of blast furnace grade pellets remains stable at $118/mt 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 5.1 percent, up from 4.8 percent previously, reflecting the interest by integrated producers for the performance of premium ores when processed in blast furnaces.
In the Brazilian domestic market, reference prices are now $79/mt for the ore and $93/mt for pellets, down respectively from $83/mt and $97/mt previously, ex-works, no taxes included. Such prices were negatively affected by higher Brazil-China freight rate, as the domestic price is based on the FOB quotation, having CFR China as the reference.
In May, Brazil exported 32.676 million mt of iron ore (pellets excluded) and 2.401 million mt of pellets, compared to 28.267 million mt and 2.086 million mt, respectively, in April.
The iron ore destinations were Asia (26.437 million mt, of which 23.409 million mt to China), Europe (2.634 million mt), the Middle East (2.188 million mt), South America (833,400 mt), Mexico (429,000 mt), and Egypt (153,900 mt).
The destinations of the pellets were Asia (578,800 mt), Africa (502,700 mt), Europe (480,700 mt), the US (307,200 mt), Trinidad and Tobago (243,700 mt), the Middle East (197,200 mt), and South America (90,900 mt).