The price of Brazilian high-grade iron ore, 65 percent iron contents, is $125/mt today, CFR China conditions, stable from September 29 although declining by $1.37/mt from the last quotation before the holidays period in China.
The price of the high-grade iron ore is negatively affected by pessimism regarding steel demand in China, the low margins currently achieved by the country’s steel industry, and by the restrictions imposed on local steel production.
The Brazilian high-grade product has now a premium of 1.6 percent in relation to the 62 percent Australian iron ore, against 1.5 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 $144/mt, CFR China, against $145/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 $99/mt for the iron ore and $118/mt for the pellets, against $102/mt and $121/mt previously, ex-works, no taxes included. Such prices were negatively affected by higher Brazil-China freight rates, as the Brazilian domestic price is based on the local FOB price.
In September, Brazil exported 33.88 million mt of iron ore (pellets excluded) and 1.84 million mt of pellets, against respectively 35.54 million mt and 1.97 million mt in August.
The main destinations of the iron ore were Asia (29.48 million mt, of which 25.56 million mt to China), the Middle East (1.89 million mt), Europe (1.35 million mt), South America (700,000 mt), Mexico (400,000 mt), and the US 67,400 mt).
The main destinations of the pellets were Africa (618,700 mt), Asia (527,200 mt), the US (233,600 mt), Argentina (173,800 mt), Qatar (165,000 mt) and the Netherlands (126,500 mt).
