The price of Brazilian high-grade iron ore, 65 percent iron contents, is $145/mt today, CFR China, against $150/mt on January 29. Interrupting a recent upward trend, the price now reflects the impact of an official report indicating that industrial activity in China declined in January for the fourth consecutive month.
Analysts warned that the decline also reflects the end of the restocking of iron ore before the holidays period in China, although additional sharp declines are not expected, due to a consistent increase of the country’s steel production.
The export price of blast furnace grade pellets is now $161/mt, against $165/mt previously, 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, is now 4.9 percent, the highest rate in five months, against 3.6 percent previously, possibly reflecting more interest by the integrated steel producers for the higher productivity of the premium ores.
In the Brazilian domestic market, the prices are estimated at $119/mt for the iron ore and $134/mt for the pellets, against respectively $123/mt and $138/mt previously, ex-works, no taxes included.