Brazilian high-grade iron ore (65% Fe) is now priced at $116/mt, down from $118/mt last week, CFR China.
The supply and demand dynamics for ore continue to be influenced by uncertainties surrounding Chinese demand, increasing inventories at the country's ports, and reduced iron ore shipment volumes from international suppliers.
The export price of blast furnace grade pellets is now $134/mt, against $136/mt previously, CFR China, reflecting a stable premium relative to equivalent sinter feed fines.
The premium for Brazilian high-grade ore, containing 65 percent iron, relative to Australian 62 percent iron ore, based on their iron units, is 8.1 percent, against 8.2 percent previously, still reflecting reduced interest of steel producers for the high performance of premium products when processed in blast furnaces.
In the Brazilian domestic market, reference prices are now $90/mt for the ore and $108/mt for pellets against, respectively, $92/mt and $110/mt previously, ex-works and excluding taxes.
In October, Brazil exported a combined 40.7 million mt of iron ore and pellets, against 36.5 million mt in September.
Iron ore (pellets excluded) exports have reached 38.58 million mt, destined to Asia (34.24 million mt, of which 29.08 million mt to China), the Middle East (1.53 million mt), Europe (1.36 million mt), South America (737,900 mt), and Africa (542,700 mt).
Pellets exports have reached 2.12 million mt, mainly destined to Asia (941,200 mt) and Europe (508,400 mt), while smaller volumes were shipped to the United Arab Emirates, Egypt, the US and Argentina.
