The price of Brazilian high-grade iron ore, with 65 percent iron content, is now $107/mt CFR China, compared to $108/mt on May 23.
According to sources, this decline is demand-driven and reflects research showing that, of 242 steel plants, the average blast furnace operation rate declined in relation to the previous month, resulting in lower pig iron production and iron ore demand. More blast furnace maintenance stoppages are expected in China in June.
The export price of blast furnace grade pellets has decreased to $120/mt from $122/mt previously, CFR China, maintaining the same premium relative to sinter feed fines.
The premium of Brazilian high-grade ore (65 percent iron) over Australian ore (62 percent iron), based on iron content, is now 5.9 percent, up from 5.7 percent, reflecting continued low interest from integrated steel producers in higher-productivity, lower-emission premium ores for blast furnaces. This low premium formed the basis for the decision of the Brazilian mining company Vale to develop a low-grade blend to serve the Chinese and other Asian markets.
In the Brazilian domestic market, reference prices are now $85/mt for ore and $98/mt for pellets, down from $86/mt and $99/mt respectively, ex works and excluding taxes.