The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $137/mt CFR China on May 22, against $133/mt CFR China on May 20.
Having achieved the higher figure since February 19, the price is supported by expectations derived from the announcement by Chinese authorities of a support to the country’s real estate sector, despite the high level of the local iron ore stocks.
Last week, China announced an extra $140 billion loan to the sector, in a package that includes the flexibilization of the mortgage legislation.
The export price of blast furnace grade pellets is $150/mt, against $146/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, when considering their iron units, is 7.2 percent, against 7.6 percent previously, 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 $109/mt for the iron ore and $122/mt for the pellets, against respectively $103/mt and $116/mt previously, ex-works, no taxes included.
The domestic prices were positively affected by lower Brazil-China freight rates, as domestic prices are based on FOB prices, having CFR China as the reference.