The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $102/mt today, the lowest price since November 2022, against $103/mt on 18 September, CFR China.
According to sources, market players have perspectives for a lower Chinese demand for iron ore, amid un uneven economic scenario, with a decline in the housing construction, which is not compensated by fresh works in the infrastructure sector, both intensive steel consuming sectors.
The export price of blast furnace grade pellets is now $119/mt against $120/mt previously, CFR China, reflecting the same 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 9.2 percent, against 9.0 percent previously, reflecting the increased 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 stable at $72/mt for the iron ore and $89/mt for the pellets, ex-works, no taxes included, also reflecting lower sea freight rates, as the domestic prices are based on FOB prices having CFR China as the reference.
The most recent data on the Brazil-China iron ore freight rate is $27/mt for the Tubarão-Qingdao route.
Preliminary numbers remain pointing to combined iron ore and pellets exports from Brazil in September exceeding the 34.31 million mt exported in August.