The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $131/mt today, against $129/mt on December 21, CFR China conditions.
Considering a seven-day moving average, the price has been consistently increasing since the first week of November.
Price expectations for the product are predicted to hover in the range of $110-$130/mt CFR during the first quarter of 2023.
The Brazilian high-grade product has now a premium of 9.1 percent in relation to the 62 percent Australian iron ore, when considering their iron units, against 8.3 percent previously, reflecting increased demand for premium iron ore.
Conversely, the export price of blast furnace grade pellets is now $148/mt, CFR China, against $151/mt CFR China previously, reflecting a reduced premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are now estimated at $106/mt for iron ore and $123/mt for the pellets, against respectively $108/mt and $131/mt previously, ex-works, no taxes included. Such reductions reflect not only the lower premium ascribed to the pellet, but also a higher sea freight rate, as the domestic price of the iron ore is based on its FOB export price.
In December, the combined exports of iron ore and pellets from Brazil are expected to decline from the 28.98 million mt exported in November.