The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $125/mt on July 15, stable from July 8, CFR China.
According to analysts, although increased iron ore volumes have recently arrived in Chinese ports, prices are sustained by indications that the Third Plenum meeting, currently taking place in China, will unveil more incentives to the manufacturing industry, while managing the real estate crisis and stimulating the domestic consumption in general.
The export price of blast furnace grade pellets was $138/mt on July 15, against $137/mt on July 8, 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 10.3 percent, against 9.6 percent previously, 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 $94/mt for the iron ore and $107/mt for the pellets, against respectively $92/mt and $105/mt previously, ex-works, no taxes included.
Such domestic prices were positively affected by lower Brazil-China sea freight rates, as the domestic price is based on FOB conditions, having CFR China as reference.
The Tubarão-Qingdao freight rate is currently estimated at $28.51/mt.
In June, Brazil exported 33.22 million mt of combined iron ore and pellets.
Preliminary indications point to a higher volume being exported in July.