The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $118/mt on June 24, against $122/mt on June 17, CFR China.
According to analysts, the decline reflects indications of low demand for steel products in China, coupled to an evaluation of the US Dollar, as a strong Dollar negatively affects the demand for commodities quoted in the US currency, from holders of other currencies.
Intensive floods and high temperatures, in some Chinese regions, resulted in the interruption of activities in civil construction sites, raising uncertainties on the demand for steel products.
The export price of blast furnace grade pellets was $130/mt on June 24, CFR China, against $134/mt on June 17, 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 10.0 percent, against 9.2 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 $88/mt for the iron ore and $101/mt for the pellets, against respectively $93/mt and $105/mt, ex-works.