The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $123/mt on 26 June, against $118/mt on 24 June, CFR China.
Maintaining an oscillating pattern over the last weeks, the increase now reportedly reflects a surge of acquisitions in the Chinese spot market, as players believe that the authorities will offer more measures to stimulate the country’s troubled real estate market.
According to sources, players have positive expectations in relation to the “Third Plenum”, to take place in July, when monetary policies and financial reforms will be discussed, to foster the economic stability and sustainable growth in China.
The export price of blast furnace grade pellets was $136/mt on 26 June, CFR China, against $130/mt on 24 June, 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 10.0 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 $93/mt for the iron ore and $105/mt for the pellets, against respectively $88/mt and $101/mt, ex-works, no taxes included.