The price of Brazilian high-grade iron ore, 65 percent iron contents, is $132/mt today, against $131/mt on December 28, CFR China conditions.
The small increase, under a consistent uptrend since early November 2022, reflects the softening of the measures taken by Chinese authorities to fight the Covid-19 pandemic, which was not modified so far despite the current spread in the country.
Expectations are maintained for iron ore export prices hovering in a CFR range of $110/mt to $130/mt, during the first quarter of 2023.
The Brazilian high-grade product has now a premium of 7.1 percent in relation to the 62 percent Australian iron ore, against 9.1 percent previously, still reflecting increased demand for the premium iron ore.
The export price of blast furnace grade pellets is now $149/mt, CFR China, against $148/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 now estimated at $107/mt for the iron ore and $124/mt for the pellets, against respectively $106/mt and $123/mt previously, ex-works, no taxes included.
In December 2022, the combined exports of iron ore and pellets from Brazil reached 32.02 million mt, against 28.98 million mt exported in November. The increase reflects chiefly the high volumes exported during the last two weeks of December.