The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $125/mt on July 8, against $130/mt on July 4, CFR China.
Although having increased by five consecutive sessions last week, supported by perspectives for increased Chinese domestic demand for steel products, the players have reportedly concluded that the price achieved on July 4 was of difficult sustainability, due to a steel demand lower than expected for the short term and higher iron ore inventories in the country’s ports.
The export price of blast furnace grade pellets was $137/mt on July 8, against $142/mt on July 4, 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 9.6 percent, against 8.7 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 $92/mt for the iron ore and $105/mt for the pellets, against respectively $97/mt and $110/mt previously, ex-works, no taxes included.
In June, Brazil exported 31.39 million mt of iron ore (pellets excluded) and 1.83 million mt of pellets, against respectively 30.82 million mt and 2.01 million mt in May.
The iron ore exports of June were destined to Asia (28.27 million mt, of which 24.75 million mt to China), the Middle East (1.48 million mt), Europe (970,500 mt), South America (411,700 mt) and Mexico (254,900 mt).
The pellets were destined to Asia (491,500 mt), the US (339,200 mt), Libya (310,000 mt), Argentina (198,200 mt), Trinidad and Tobago (172,300 mt), Egypt (161,700 mt) and Europe (155,500 mt).