The price of Brazilian high-gradeiron ore, 65 percent iron contents, is $108/mt today, against $109/mt on September 21, CFR China conditions.
According to analysts, such virtual stability reflects increasing construction activity in China, as the developer Evergrande Group informed that 668 of their 706 previously sold projects have resumed construction works, while many steel producers have decided to restart operations after months idled for maintenance. Such factors are reportedly compensating for the negative impact of China’s restrictive policy adopted during the Covid-19 pandemic.
The Brazilian high-grade product has now a premium of 7.8 percent in relation to the 62 percent Australianiron ore, against 7.9 percent previously, a positive figure in historical terms.
The price of blast furnace grade pellets is now $132/mt, against $134/mt previously, reflecting a stable premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are now estimated at $86/mt for theiron oreand $110/mt for the pellets, against respectively $87/mt and $111/mt previously, ex-works, no taxes included.
Preliminary numbers from customs remain pointing a higher volume of combinediron oreand pellets being exported fromBrazilin September, compared to the 33.46 million mt exported in August.