The price of Brazilian high-grade iron ore, 65 percent iron contents, is $138/mt today, against $137/mt on November 3, CFR China conditions.
According to analysts, the iron ore price remains in uptrend, supported by optimism derived recently from a speech by the governor of the Chinese central bank, addressing the assistance to the domestic real estate market.
The Brazilian high-grade product has now a premium of 3.1 percent in relation to the 62 percent Australian iron ore, against 2.8 percent previously, remaining among the lowest figures in recent years, reflecting the reduced importance currently ascribed by the integrated steel producers to the higher productivity of high-grade products in blast furnaces.
The export price of blast furnace grade pellets is now $159/mt, CFR China, against $157/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 estimated at $114/mt for the iron ore and $135/mt for the pellets, against $108/mt and $129/mt previously, ex-works, no taxes included. Such prices were positively affected by lower Brazil-China sea freight rates, as the domestic prices are usually based on FOB prices, considering the CFR China quotation as the reference.
In October, Brazil exported a combined 33.81 million mt of iron ore and pellets, against 35.73 million mt in September.