The price of Brazilian high-grade iron ore, 65 percent iron contents, is $144/mt today, against $140/mt on March 6, CFR China conditions.
The price remains volatile, reflecting unconclusive reports on the current volume of Chinese steel production, while iron ore exports from Brazil are in an upward trend.
After bottoming down at 600,000 mt exported per day by the end of February, reflecting the seasonal logistical problems derived from intensive rains in the country’s southeast, such export pace today is estimated at 1.1 million mt per day, when considering a 14-day moving average.
The Brazilian high-grade product has now a premium of 6.0 percent in relation to the 62 percent Australian iron ore, against 6.4 percent previously, still reflecting good demand for high-grade products.
The export price of blast furnace grade pellets is now $163/mt, CFR China, against $160/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 $124/mt for the iron ore and $143/mt for the pellets, against respectively $120/mt and $139/mt previously, ex-works, no taxes included.
In February, Brazil exported 21.48 million mt of iron ore (pellets excluded) and 1.94 million mt of pellets.
Asia was the main destination of the iron ore (17.33 million mt, of which 15.03 million mt to China), followed by the Middle East (2.00 million mt) and Europe (1.69 million mt). Smaller volumes were shipped to Mexico, Uruguay and Argentina.
The main destination of the pellets was the US (393,700 mt), followed by Trinidad and Tobago (245,000 mt), Argentina (197,900 mt), the United Arab Emirates 196,200 mt), Turkey (217,400 mt), Belgium (145,300 mt), Mexico (107,300 mt), France (150,200 mt), South Korea (132,200 mt), Algeria (110,000 mt) and Japan (40,200 mt).
