The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $117/mt today, against $120/mt on November 4, CFR China.
According to analysts, the decline reflects disappointment of investors in relation to the announcement of incentives made by China’s Standing Committee of the National People’s Congress on November 8.
Data about higher iron ore imports by China, unveiled last week, have also played a negative role on iron ore prices.
The export price of blast furnace grade pellets is $133/mt, down from $137/mt previously, CFR China, reflecting the same premium ascribed to the product in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, when considering their iron units, is 10.2 percent against 9.8 percent previously, reflecting increased interest, at such price level, by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the reference prices are $93/mt for the iron ore and $110/mt for the pellets against respectively $96/mt and $113/mt previously, ex-works, no taxes included.
In October, Brazil exported 32.74 million mt of iron ore (pellets excluded) and 2.53 million mt of pellets against respectively 34.47 million mt and 2.40 million mt in September.
The iron ore was destined in October to Asia (29.53 million mt, of which 25.76 million mt to China), the Middle East (1.62 million mt), and Europe (1.46 million mt), while smaller volumes were shipped to Mexico and Argentina.
The pellets were destined to Asia (870,200 mt), Africa (564,300 mt), Argentina (340,000 mt), Europe (285,600 mt), the US (233,600 mt), and Trinidad and Tobago (169,500 mt), while a smaller volume was shipped to Mexico.