The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $103/mt today against $105/mt on September 6, CFR China.
This price is the lowest since November 2022, in a trend that reflects reduced steel production and iron ore demand as a consequence in China.
According to sources, the steel production in China between August 21 and 31 declined by 5 percent from the period from August 9 to 20, while on an annual basis, the decline was 8 percent from the August 21 to 31 of 2023.
The export price of blast furnace grade pellets is now $120/mt against $121/mt previously, 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, is 9.4 percent against 9.5 percent previously, still 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 estimated at $72/mt for the iron ore and $89/mt for the pellets against respectively $74/mt and $90/mt previously, ex-works, no taxes included.