The price of Brazilian high-grade iron ore, 65 percent iron contents, is $98/mt today, against $94/mt on October 31, CFR China conditions.
According to sources, the increase, which was consistent over five consecutive days, reflects rumors that China is considering easing Covid 19 restrictions; although denied by authorities, the rumors are reducing concerns about weaker demand for steel products and reduced iron ore demand.
The Brazilian high-grade product has now a premium of 6.3 percent in relation to the 62 percent Australian iron ore, against 11.7 percent previously, a decline to the lowest level in more than two months, now possibly reflecting reduced demand for premium products.
The export price of blast furnace grade pellets is now $122/mt, CFR China, against $119/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 $75/mt for the iron ore and $99/mt for the pellets, against respectively $70/mt and $94/mt previously, ex-works, no taxes included.
In October, Brazil exported 25.68 million mt of iron ore (pellets excluded) and 1.12 million mt of pellets, against respectively 33.87 million mt and 2.43 million mt in September.
The iron ore exports of October were destined to Asia (21.91 million mt, of which 18.90 million mt to China), Europe (1.78 million mt), the Middle East (1.73 million mt) and South America (254,300 mt).
The pellets exports were destined in October to Argentina (321,500 mt), the US (278,400 mt), Trinidad and Tobago (163,100 mt) and Algeria (108,900 mt), while smaller volumes were shipped to Germany, Japan and South Korea.