Brazilian high-grade iron ore (65% Fe) is now priced at $123/mt, up from $119/mt two weeks ago, CFR China.
According to analysts, the increase reflects the combination of data unveiling higher steel exports from China and lower iron ore shipments destined to the country, which have compensated for the resurgence of commercial tensions between China and the US.
The export price of blast furnace grade pellets is now $142/mt, against $138/mt previously, CFR China, reflecting the same 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 now 9.2 percent, from 10.2 percent previously, maintaining a high premium in historical terms, reflecting the 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 $95/mt for the ore and $113/mt for pellets, against respectively $91/mt and $110/mt previously, ex-works and excluding taxes.
In September, Brazil exported 34.528 million mt of iron ore (pellets excluded) and 1.971 million mt of pellets, against respectively 38.068 million mt and 2.138 million mt in August.
Iron ore shipments in September were destined to Asia (30.416 million mt, of which 26.850 million mt to China), the Middle East (1.875 million mt), Europe (1.035 million mt), South America (1.073 million mt), and Mexico (129,500 mt).
Pellets shipments were destined to Asia (706,400 mt), Africa (476,900 mt), Trinidad and Tobago (253,800 mt), Europe (236,100 mt), Argentina (133,400 mt), and the Middle East (165,000 mt).