The price of the Brazilian high-grade iron ore, 65 percent iron contents, was $133/mt on 20 May, against $134/mt on 13 May, CFR China.
According to sources, the macroeconomic news from China is positive, but the lower margins currently achieved by the local steel producers should result in pressures to reduce the iron ore prices.
The export price of blast furnace grade pellets is $146/mt, stable from 13 May, 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 7.6 percent, against 8.7 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 $103/mt for the iron ore and $116/mt for the pellets, against respectively $104/mt and $117/mt previously, ex-works, no taxes included.
In April, Brazil exported 27.20 million mt of iron ore (pellets excluded) and 2.50 million mt of pellets. Preliminary numbers point to higher volumes in May.