The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $130/mt on July 4, against $126/mt on July 2, CFR China.
Increasing in the fifth consecutive session, the price is supported by a strong short-term demand derived from better perspectives for the steel industry in China, a weaker US dollar and perspectives for more incentives to the real estate sector in the Asian country.
The export price of blast furnace grade pellets was $142/mt on July 4, against $138/mt on July 2, 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 8.7 percent, against 9.0 percent previously, still 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 $97/mt for the iron ore and $110/mt for the pellets, against respectively $95/mt and $108/mt previously, ex-works, no taxes included.
Such domestic prices were negatively affected by higher Brazil-China sea freight rates, as the domestic price is based on FOB conditions, having CFR China as reference.
According to sources, the average Tubarão-Qingdao sea freight rate for iron ore is currently estimated at $29.20/mt.