The price of Brazilian high-grade iron ore, 65 percent iron contents, is $120/mt today, against $112/mt on November 28, CFR China conditions.
It is the highest figure since $121/mt was reached on August 2, reflecting chiefly measures taken by Chinese authorities to strengthen the country’s real state sector, including the granting by private banks of credit lines of up to $162 billion to private developers, to face the liquidity crisis in the sector.
According to sources, the Chinese economy remains threatened by the ongoing Covid-19 cases, which could ultimately affect iron ore prices, although 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 7.1 percent in relation to the 62 percent Australian iron ore, against 7.8 percent previously, still reflecting an increased demand for premium iron ore products.
The export price of blast furnace grade pellets is now $142/mt, CFR China, against $136/mt previously, reflecting a slightly reduced premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are now estimated at $99/mt for the iron ore and $122/mt for the pellets, against respectively $91/mt and $116/mt previously, ex-works, no taxes included.
In November, Brazil exported a combined 29.98 million mt of iron ore and pellets, against 26.79 million mt in October.