The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $117/mt today, July 24, against $121/mt on July 18, CFR China.
The price declined consistently between July 18-23, reflecting the frustration of players in relation to the announcements by the Third Plenum meeting last week, which were supposed to unveil incentives for the real estate and construction sectors.
However, on July 24, the price has shown a small increase, reflecting a strong volatility from the perspectives of a weak demand from China, compensated by movements of iron ore restocking by the country’s steel producers.
The export price of blast furnace grade pellets is now $129/mt against $133/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 10.9 percent, against 9.7 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 $85/mt for the iron ore and $98/mt for the pellets, against respectively $89/mt and $102/mt previously, ex-works, no taxes included.
Preliminary indications remain pointing to combined iron ore and pellets exports from Brazil in July exceeding the 33.22 million mt exported in June.