The price of Brazilian high-grade iron ore, 65 percent iron contents, is $105/mt today, against $104/mt on November 14, CFR China conditions.
Such prices have consistently increased last week, achieving a peak of $108/mt on November 18, the highest quotation in five weeks. Despite the $3/mt decline from Friday, prices are expected to remain stable for the coming months, at least during the first quarter of 2023, according to sources, which expect a range of $105/mt to $115/mt, FOB conditions, for the price of the Brazilian high grade product during the period.
Jose Carlos Martins, a former iron ore director of Vale, was quoted by the local newspaper Valor Econômico as saying that the Covid zero program in China had only a relative influence over prices, “more psychological than effective,” in his view, adding that Chinese steel production in 2022 will end up with a volume similar to that of 2021.
The Brazilian high-grade product has now a premium of 4.1 percent in relation to the 62 percent Australian iron ore, against 4.6 percent previously, possibly reflecting reduced demand for premium iron ore products.
The export price of blast furnace grade pellets is now $129/mt, CFR China, against $128/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 $82/mt for the iron ore and $106/mt for the pellets, against respectively $81/mt and $105/mt previously, ex-works, no taxes included.
According too preliminary indications, the combined exports of iron ore and pellets from Brazil in November are expected to repeat or increase slightly the 26.80 million mt exported in October.