Assuming the lowest value since November 2022, the price of the Brazilian high-grade iron ore, 65 percent iron contents, is $106/mt today, against $114/mt on August 12, CFR China.
According to analysts, the main driver for the decline is the lower-than-expected steel price in the Chinese domestic market negatively affecting the perspectives for the iron ore demand.
Sources mentioned now there is little room for additional price declines as the current iron ore prices are close to the cost, for foreign miners, to place the ore in Chinese ports although this is not the specific condition in Brazil.
The export price of blast furnace grade pellets is now $123/mt, CFR China, against $130/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 10.8 percent, against 10.2 percent previously, 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 $78/mt for the iron ore and $95/mt for the pellets, against respectively $87/mt and $104/mt previously, ex-works, no taxes included.
Preliminary numbers for August point to a volume of combined iron ore and pellets exports reduced from the 39.17 million mt exported in July.