The price of Brazilian high-grade iron ore, 65 percent iron contents, is $145/mt today, against $142/mt on November 15, CFR China conditions, the highest price since mid-March.
According to sources, the price is positively affected by a combination of factors, including the announced support of the Chinese government to the country’s real estate sector coupled with fears of a workers strike in Australia, which could affect the supply of iron ore in the seaborne market.
The Brazilian high-grade product has now a premium of 3.4 percent in relation to the 62 percent Australian iron ore, against 2.9 percent previously, still remaining among the lowest figures in recent years, reflecting the relatively reduced importance currently ascribed by the integrated steel producers to the higher productivity of high-grade products in blast furnaces.
The export price of blast furnace grade pellets is now $168/mt, CFR China, against $165/mt previously, reflecting a stable premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are estimated at $121/mt for the iron ore and $143/mt for the pellets, against $117/mt and $140/mt previously, ex-works, no taxes included.
Preliminary figures point to a stable volume of combined iron ore and pellets exported from Brazil in November, when compared to the 33.81 million mt exported in October.
