Export offers for Brazilian high-grade iron ore, 65 percent iron contents, is $110/mt today, against $112/mt on October 10, CFR China conditions.
The decline reflects uncertainties raised by the possibility of lockdowns in China and the consequent suspension of construction activities due to the Covid-19 pandemic, despite the fact that the current level of infections in the country is not considered as alarming.
The Brazilian high-grade product has now a premium of 9.3 percent in relation to the 62 percent Australian iron ore, against 8.5 percent previously, showing an uptrend during recent months that reflects increased demand for premium products for their performance in blast furnaces.
The export price of blast furnace grade pellets is now $134/mt, CFR China, against $136/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 $83/mt for the iron ore and $107/mt for the pellets, against respectively $90/mt and $114/mt previously, ex-works, no taxes included. Such prices were also affected by higher freight rate Brazil-to China, as the base for the domestic price is the FOB equivalent.
Preliminary numbers from customs are pointing to an increased combined volume of iron ore and pellets being exported from Brazil in October, comparing to the 36.30 million mt exported in September.