The daily price of the high-grade Brazilian iron ore with a 65 percent iron content is assessed at $125/mt, CFR China, against $120/mt seven days earlier, amid growing reports that supply remains tight, market insiders told SteelOrbis this week.
Blast furnace grade pellets are now exported at $143/mt, against $138/mt previously, showing a stable premium over same-grade sinter feed fines, they said.
The premium for Brazilian high-grade ore containing 65 percent iron, relative to Australian ore with 62 percent iron, increased to 11.4 percent from a previous 9.6 percent, when considering the iron units. The current ratio -the highest since September 2025- reflects not only steel producers’ interest in the superior performance of premium ores in blast furnace operations, but also a continued relative scarcity of the product, insiders said.
Insiders said scarcity results from a strategic decision by the world’s largest producer of iron ore, Vale S.A., to concentrate on producing lower grade iron ore for China and other Asian markets. This approach allows Vale to reduce production costs, while attaining higher profit margins, even though it involves accepting a reduced sales price for their product.
The recent decrease in iron ore shipments from Brazil to China -15 percent less between January and February and 28 percent less from December to January- also is contributing to the limited availability of high-grade iron ore, insiders told SteelOrbis.
In the Brazilian domestic market, reference prices are now $96/mt for the ore and $114/mt for pellets, against respectively $93/mt and $111/mt previously, ex-works, no taxes included.
In 2025, Vale increased iron ore production to 336 million tons, narrowly edging out the previous world leader Rio Tinto, who produced 327.3 million tons of iron ore from its Pilbara operation in Western Australia.
