The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $114/mt today against $110/mt on August 23 and $106/mt on August 16, CFR China.
During the period, the price has shown a positive although oscillating pattern, derived from different viewpoints of analysts in relation to the perspectives of the Chinese demand for the ore and the level of its stocks in Chinese ports.
In relation to the demand, the short-term perspectives remain negative, reflecting the actions in different countries to reduce imports of Chinese finished steel products, which could ultimately reduce the steel production and iron ore demand as consequence in China.
The export price of blast furnace grade pellets is now $130/mt, CFR China, against $126/mt on August 23 and $123/mt on August 16, 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 8.5 percent today against 9.7 percent on August 23 and 10.8 percent on August 16, reflecting declining 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 $101/mt for the pellets against $82/mt and $99/mt on August 23 and $78/mt and $95/mt on August 16, ex-works, no taxes included.
Preliminary numbers for August remain pointing to a volume of combined iron ore and pellets exports from Brazil reduced from the 39.17 million mt exported in July.