The price of Brazilian high-grade iron ore, 65 percent iron contents, is $129/mt today, against $125/mt on October 9, CFR China conditions.
According to sources, the price has been positively affected by a combination of factors, including lower availability of ferrous scrap and lower stocks of iron ore in China (105.2 million mt, the lowest volume since June 2020).
The Brazilian high-grade product has now a premium of 2.5 percent in relation to the 62 percent Australian iron ore, against 1.6 percent previously, remaining among the lowest figures in recent years, reflecting the 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 $149/mt, CFR China, against $144/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 $101/mt for the iron ore and $120/mt for the pellets, against $99/mt and $118/mt previously, ex-works, no taxes included. Higher international freight rates have negatively affected the domestic prices, which are based on FOB Brazil quotations.
In September, Brazil exported 33.88 million mt of iron ore (pellets excluded) and 1.84 million mt of pellets. Such volumes are expected to decline in October, considering data of the first two weeks of the month.