The price of Brazilian high-grade iron ore, 65 percent iron contents, is $125/mt today, against $120/mt on December 2, CFR China conditions.
The increase still reflects the softening of the measures taken by Chinese authorities to fight the Covid-19 pandemic, coupled with measures to strengthen the country’s real state sector, to face the liquidity crisis in that sector.
Expectations are maintained for the price of the Brazilian high grade product hovering in a FOB range of $105/mt to $115/mt, at least during the first quarter of 2023.
The Brazilian high-grade product has now a premium of 5.6 percent in relation to the 62 percent Australian iron ore, against 7.1 percent previously, still reflecting an increased demand for premium iron ore products.
The export price of blast furnace grade pellets is now $147/mt, CFR China, against $142/mt previously, reflecting 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 $104/mt for the iron ore and $126/mt for the pellets, against respectively $99/mt and $122/mt previously, ex-works, no taxes included.
In November, Brazil exported 28.63 million mt of iron ore (pellets excluded) and 1.35 million mt of pellets.
The iron ore exports were destined chiefly to Asia (24.77 million mt, of which 22.00 million mt to China), the Middle East (2.29 million mt) and Europe (1.22 million mt)
The main destinations of the pellets were Argentina (300,000 mt), Saudi Arabia (173,600 mt), Vietnam (166,700 mt), Libya and Egypt (150,000 mt each) and the US (135,000 mt).