The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $121/mt on July 18, against $125/mt on July 15, CFR China.
According to analysts, the decline reflects frustrations by players in relation to the expected incentives discussed during the Third Plenum, that took place this week in China, although the Chinese steel producers, looking for lower prices, are reportedly returning to the acquisitions of raw materials, which could give support to the iron ore price in the short term.
The export price of blast furnace grade pellets was $133/mt on July 18, against $138/mt on July 15, CFR China, 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, was 9.7 percent, against 10.3 percent previously, still reflecting the interest 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 $89/mt for the iron ore and $102/mt for the pellets, against respectively $94/mt and $107/mt previously, ex-works, no taxes included.
Preliminary indications remain pointing to combined iron ore and pellets exports from Brazil in July exceeding the 33.22 million mt exported in June.