The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $114/mt today against $109/mt on August 20, CFR China.
The return to the highest price in more than two weeks, in the view of analysts, reflects a weaker US Dollar and perspectives for increased demand for steel products in China. This is expected for the next peak of activities of the civil construction sector in China.
The export price of blast furnace grade pellets is now $130/mt, CFR China, against $126/mt previously, reflecting a stable premium ascribed to the product in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, when considering their iron units, is 8.9 percent against 10.3 percent previously, possibly reflecting lower interest at such price level, by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the prices are estimated at $86/mt for the iron ore and $103/mt for the pellets against respectively $81/mt and $98/mt previously, ex-works, no taxes included.
Preliminary numbers for August remain pointing to a volume of combined iron ore and pellets exports from Brazil reduced from the 39.17 million mt exported in July.