The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $121/mt today against $114/mt on September 27, CFR China.
It was the highest single day increase for the price of the product since December 2022, returning to the level of mid-July 2024, reflecting improved perspectives by players in relation to the iron ore demand in China due to incentives for the real estate business in the country, coupled with announced policies of monetary flexibilization by the local authorities.
On Sunday, China’s central bank said that it will ask the banks to reduce their mortgage taxes for existing real estate loans before October 31, as part of the policies to support such market, the most intensive steel consumer in the country.
The export price of blast furnace grade pellets is $138/mt against $131/mt previously, 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 6.8 percent against 7.7 percent previously, now the lowest figure in four months, but still reflecting the 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 are $90/mt for the iron ore and $107/mt for the pellets against respectively $83/mt and $100/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 are pointing to combined iron ore and pellets exports from Brazil in September in line with the 34.31 million mt exported in August.