Assuming the lower value in more than four months, the price of the Brazilian high-grade iron ore, 65 percent iron contents, is $114/mt today against $118/mt on August 6, CFR China.
Showing an oscillating pattern along the week, the prices now reflect increased volume from the offer side while the demand for steel in China remains weak, reflecting the low activity of the civil construction sector of the country.
The export price of blast furnace grade pellets is now $130/mt, CFR China, stable from last week, reflecting a higher 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 10.2 percent, stable from last week, 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 $87/mt for the iron ore and $104/mt for the pellets against respectively $90/mt and $102/mt previously, ex-works, no taxes included.
In July, Brazil exported 37.11 million mt of iron ore (pellets excluded), the highest monthly volume in recent years, and 2.06 million mt of pellets.
The destinations of the iron ore were Asia (32.44 million mt, of which 28.12 million mt to China), the Middle East (2.42 million mt), Europe (1.77 million mt), South America (297,100 mt), and Africa (179,400 mt).
The destinations of the pellets were Asia (782,200 mt), Africa (559,400 mt), Europe (501,600 mt), and South America (213,400 mt).