The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $114/mt on September 27, against $107/mt on 24 September, CFR China.
During the September 23-27 week, the price of the high grade ore increased by more than 12 percent, supported by new interest rate cuts in China and perspectives for more fiscal and real estate incentives in the country, coupled to the announcements made by the Chinese government earlier in this week, and by the ongoing rebuild of iron ore inventories by the Chinese steel producers before the Chinese National Day holidays starting October 1.
In Brazil, the quotations of the shares of the miner Vale, in the São Paulo Stocks Exchange, have shown a sharp increase during the week, increasing the market capitalization of the company by the equivalent to $5.43 billion. Vale has 82 percent of its revenues linked to iron ore.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, when considering their iron units, is 7.7 percent against 8.1 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 were $83/mt for the iron ore and $100/mt for the pellets against respectively $77/mt and $93/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.