After having consistently increased from $119/mt on June 11 to $123/mt on June 14, Brazilian high-grade iron ore prices with 65 percent iron contents decreased to $122/mt CFR China on June 17.
The price of iron ore declined after the release by Chinese authorities of a set of information about the Chinese economy, containing data considered below expectations by market players.
Intensive floods and high temperatures have reportedly been in some regions, affecting the economic activities, and raising doubts about perspectives for steel demand and for iron ore as a consequence, in the short term.
The higher volume of iron ore in Chinese ports also remains playing a role in the decline of prices.
The export price of blast furnace grade pellets is $134/mt, against $135/mt on June 14, reflecting a stable premium ascribed to the product, in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore as compared to the Australian 62 percent iron ore, when considering their iron units, is now 9.4 percent, against 9.2 percent on June 14, still 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 $93/mt for the iron ore and $105/mt for the pellets, against respectively $94/mt and $106/mt on June 14, ex-works, no taxes included.
In May, Brazil exported a combined 32.83 million mt of iron ore and pellets; preliminary numbers from customs point to a stable volume being exported in June.