The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $116/mt today, against $117/mt on 24 July, CFR China.
After variations between $118/mt and $114/mt during the period, the current price reflects uncertainties regarding the weak data on the Chinese economy, vis-à-vis expectations by players for more monetary incentives following the conclusion of the Third Plenum two weeks ago.
The export price of blast furnace grade pellets is stable at $129/mt, CFR China, 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 10.7 percent, against 10.9 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 $88/mt for the iron ore and $101/mt for the pellets, against respectively $85/mt and $98/mt previously, ex-works, no taxes included. Such prices were positively affected by lower Brazil-China freight rates, as the domestic price is based on FOB prices having CFR China as the reference.
The current Brazil-China freight rate is currently estimated at $24.69/mt for the Tubarão-Qingdao route.
Due to lower volumes shipped from Brazil during the last days of July, preliminary indications now point to total combined iron ore and pellets exports from Brazil in July in line with the 33.22 million mt exported in June.