The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $107/mt on September 24, against $102/mt on the day before, CFR China.
It was the highest daily increase in more than five months, reportedly reflecting new monetary incentives announced in China, the most comprehensive in four years, coupled to perspectives of the rebuilding of iron ore inventories by the steel producers before the Chinese National Day holidays period between October 1-7.
The increase of the daily rate of steel production last week in China has also played a key role in the iron ore price increase, although analysts believe that such price may oscillate before the holidays period.
The export price of blast furnace grade pellets was $123/mt CFR China, against $119/mt CFR China previously, reflecting the same 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 8.1 percent, against 9.2 percent previously, still reflecting the increased interest, at such price level, 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 reference prices were $77/mt for the iron ore and $93/mt for the pellets, against respectively $72/mt and $89/mt previously, ex-works, no taxes included.
Due to a lower daily volume of iron ore exports from Brazil during the third week of this month, preliminary numbers now point to combined iron ore and pellets exports from Brazil in September in line with the 34.31 million mt exported in August.