The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $117/mt today, down from $120/mt on November 9, CFR China.
According to analysts, the lower iron ore price reflects reduced concerns about the supply, with the return of BHP to operations in two of its mines, after intense rains, while on the demand side the halt for maintenance of more blast furnaces in China and the consequent reduced demand for iron ore, have negatively affected the prices.
The export price of blast furnace grade pellets is $133/mt, against $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 8.2 percent, against 8.0 percent previously, reflecting the 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 $98/mt for the iron ore and $114/mt for the pellets against $94/mt and $111/mt previously, ex-works, no taxes included.
The domestic prices were positively affected by lower Brazil-China freight rates, as the domestic price is based on FOB prices with CFR China as the reference.
This week, the Tubarão (Brazil)-Qingdao (China) iron ore reference freight rate has reached $16.23/mt, the lowest in 2024 and one of the lowest in recent years.
In November, Brazil exported 31.60 million mt of iron ore (pellets excluded) and 2.07 million mt of pellets.
Preliminary numbers point to lower volumes being exported from Brazil in December.