The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $146/mt today, against $150/mt on January 8, CFR China conditions.
The price is the lowest in three weeks, reflecting pessimism among players in relation to the demand from integrated steel producers in China and the lack of incentives to the sector by the country’s authorities. The price also remains negatively affected by investors selling their positions in the market.
The Brazilian high-grade product has now a premium of 3.4 percent in relation to the 62 percent Australian iron ore, against 2.4 percent previously, possibly reflecting increased interest for the high-grade product.
The export price of blast furnace grade pellets is now estimated at $164/mt, CFR China, against $167/mt previously, reflecting a stable premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are estimated at $114/mt for the iron ore and $132/mt for the pellets, against respectively $118/mt and $136/mt previously, ex-works, no taxes included.
In December, Brazil exported 36.75 million mt of iron ore (pellets excluded) and 2.90 million mt of pellets, against 29.57 million mt and 2.03 million mt in November, respectively.