The price of Brazilian high-grade iron ore, 65 percent iron contents, is $149/mt today, against $143/mt on December 5, CFR China conditions. It is the highest quotation since $151/mt was achieved in mid-June 2022.
Despite the increase, prices maintain an oscillating pattern, now positively affected by strong data on Chinese steel exports and performance of steel producers, pointing to consistent iron ore demand.
The Brazilian high-grade product has now a premium of 3.6 percent in relation to the 62 percent Australian iron ore, against 4.4 percent previously, which still reflects an increased interest for high grade iron ore products and their higher productivity in blast furnaces.
The export price of blast furnace grade pellets is now estimated at $164/mt, CFR China, against $165/mt previously, reflecting a lower premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are estimated at $112/mt for the iron ore and $130/mt for the pellets, against $114/mt and $136/mt previously, ex-works, no taxes included.
Such prices were negatively affected by higher sea freight rates, as the domestic prices are based on FOB conditions, having CFR China as reference.
In November, Brazil exported 29.57 million mt of iron ore (pellets excluded), and 2.03 million mt of pellets.
The main destinations of the iron ore were Asia (25.78 million mt, of which 21.92 million mt to China), Europe (1.73 million mt), and the Middle East (1.67 million mt), while small volumes were shipped to Uruguay, Mexico, and the US.
The pellets were destined to Asia (701,100 mt), Europe (337,600 mt), the US (337,300 mt), Africa (318,300 mt), Argentina (173,800 mt), and Trinidad and Tobago (162,900 mt).