The price of Brazilian high-grade iron ore exports, 65 percent iron contents, is $127/mt today, CFR China, against $129/mt on April 17.
The decline reflects lower than expected iron ore restocking activities by the steel producers in China, before the country’s holiday of May 1.
According to analysts, the iron ore offer is still higher than its effective demand, as seen by increasing volume of the ore in the ports.
The export price of blast furnace grade pellets is now $139/mt, against $142/mt previously, 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, is now 6.6 percent, against 6.0 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 $98/mt for the iron ore and $110/mt for the pellets, against respectively $100/mt and $113/mt previously, ex-works, no taxes included.