Brazilian high-grade iron ore price declines from last week

Wednesday, 19 October 2022 00:58:08 (GMT+3)   |   Sao Paulo
       

The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $108/mt today, against $110/mt on October 14, CFR China conditions.

The decline reportedly reflects announcements of higher quarterly volumes of iron ore produced by both Vale and BHP, raising pressure by the supply side and negatively affecting prices. The negative mood from the “Covid zero policy” in China also remains affecting iron ore prices, due to an expected reduction of steel production and consequent lower demand for the ore in the country.

The Brazilian high-grade product has now a premium of 9.9 percent in relation to the 62 percent Australian iron ore, against 9.3 percent previously, now the higher rate since June 2022 and showing an uptrend during the last months, reflecting the increased demand for premium products for their performance in blast furnaces.

The export price of blast furnace grade pellets is now $135/mt, CFR China, against $134/mt previously, reflecting also a higher premium ascribed to the product in relation to the equivalent sinter feed fines.

In the Brazilian domestic market, the prices are now estimated at $81/mt for the iron ore and $108/mt for the pellets, against respectively $83/mt and $107/mt previously, ex-works, no taxes included. Such prices are also affected by the variation of the freight rate Brazil-to China, as the base for the domestic price is the FOB equivalent price.


Similar articles

India’s JSPL takes operational charge of iron ore complex in Venezuela

27 Mar | Steel News

Mexican iron pellet production up 2.4 percent in January

25 Mar | Steel News

Indian sponge iron producers seek import duty on exports of lower grade iron ore

21 Mar | Steel News

Australia’s Centaurus Metals explores potential for DR pellet feed from Jambreiro

14 Mar | Steel News

Brazilian high-grade iron ore price declines from last week

12 Mar | Scrap & Raw Materials

India’s coking coal port traffic up 10% in April-February of FY 2023-24

11 Mar | Steel News

Rio Tinto receives Canadian government funding for decarbonization

27 Feb | Steel News

India’s KIOCL shuts down pellet plant amid poor demand

26 Feb | Steel News

Anglo American to integrate Vale’s high quality iron resources into Brazilian operations

26 Feb | Steel News

Metinvest’s pig iron and crude steel output down in 2023

21 Feb | Steel News