The price of the Brazilian high-grade iron ore, 65 percent iron content, was $135/mt CFR China on May 6, against $131/mt on April 26.
According to sources, the increase reflects reduced volumes of the ore arriving at Chinese ports during the period, a fact that is expected to remain positively impacting the prices in the short term.
The export price of blast furnace grade pellets is $148/mt, against $144/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 8.3 percent, against 6.2 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 $107/mt for the iron ore and $120/mt for the pellets, against respectively $101/mt and $114/mt ex-works previously, no taxes included.
Such prices were positively affected by lower Brazil – China sea freight rates, as the domestic prices are based on FOB prices, having CFR China as reference.
In April, combined iron ore and pellets exports from Brazil have exceeded the 26.6 million mt exported in March.