The current price for Ex-Brazil high-grade iron ore with 65 percent iron content is $102/mt CFR China, remaining stable since June 17.
The price oscillated within a narrow range during the week and was positively affected by increased steel production and higher iron ore demand in China. However, the higher volume of iron ore exports from Brazil played a negative role.
During the week ending June 22, Brazil exported an estimated 1.3 million mt of iron ore products daily, one of the highest volumes in recent months.
The export price of blast furnace-grade pellets is now $116/mt compared to $115/mt last week, CFR China. This maintains the same premium relative to sinter feed fines.
The premium for Brazilian high-grade ore containing 65 percent iron relative to Australian ore containing 62 percent iron, based on iron content, has increased to 5.3 percent from 5.2 percent. This reflects integrated producers’ interest in premium ores’ performance in blast furnaces.
In the Brazilian domestic market, reference prices are $73/mt for ore and $86/mt for pellets, down from $75/mt and $88/mt, respectively, ex-works and excluding taxes. These prices have been negatively affected by higher Brazil-China freight rates because the domestic price is based on the FOB quotation using CFR China as the reference.
In May, Brazil exported a combined total of 35.1 million mt of iron ore and pellets. Preliminary information suggests a lower volume for June despite the high volume exported last week.