The price of Brazilian high-grade iron ore, 65 percent iron contents, is $134/mt today, against $139/mt on January 11, CFR China conditions.
According to sources, the decline reflects a reaction to news that Chinese authorities will tighten supervision of the iron ore price due to the high increase over the last months. According to such news, the authorities will check possible illegal activities, including the spread of false information.
The Brazilian high-grade product has now a premium of 5.9 percent in relation to the 62 percent Australian iron ore, against 7.2 percent previously. Although it declined to the lowest level in a one-month period, it still reflects, in historical terms, a strong demand for premium iron ore.
The export price of blast furnace grade pellets is now $151/mt, CFR China, against $156/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 $112/mt for the iron ore and $129/mt for the pellets, against respectively $118/mt and $135/mt previously, ex-works, no taxes included.
In December 2022, Brazil exported 29.50 million mt of iron ore (pellets excluded) and 2.52 million mt of pellets. Perspectives are for a small decline in January.