The price of Brazilian high-grade ore, 65 percent iron contents, has reached $179/mt, CFR China conditions, against $173/mt on January 28, under the same conditions, confirming optimistic expectations by market players unveiled before the Lunar New Year holidays in China.
Similarly, the price of the equivalent blast furnaces grade pellets has reached $238/mt, against $232/mt previously, under the same conditions.
In the Brazilian domestic market, the prices are estimated at $156/mt for the iron ore and $216/mt for the pellets, against $152/mt and $210/mt previously, ex-works, no taxes included.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 16.2 percent, still reflecting a perspective by the market of a shortage of the high-grade Brazilian ores and pellets, due to intense rains that have affected the southeastern state of Minas Gerais, where most of the mines of the miner Vale are located.
In January, Brazil exported 24.00 million mt of iron ore and 1.20 million mt of pellets, against respectively 29.30 million mt and 2.12 million mt in December. The combined volume of iron ore and pellets exported from Brazil in January was the lowest in two years.
The main destinations of the iron ore in January were Asia (19.68 million mt, of which 15.78 million mt to China), Europe (2.65 million mt) and the Middle East (1.53 million mt).
For pellets, the main destinations were Asia (453,600 mt), Africa (383,000 mt), Europe (159,100 mt), Argentina (121,400 mt) and Trinidad and Tobago (85,400 mt).