The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $115/mt today, up from $111/mt on January 6, CFR China.
According to analysts, the increase reflects reduced iron ore exports to China from Brazil and Australia, coupled to higher steel exports from China, reaching 110.72 million mt in 2024, the highest volume in nine years and 22.7 percent more than in 2023.
The export price of blast furnace grade pellets is $131/mt against $128/mt previously, CFR China, reflecting the same premium ascribed to the product in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, when considering their iron units, is 9.3 percent against 9.7 percent previously, reflecting the interest, at such price level, by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the reference prices are $93/mt for the iron ore and $110/mt for the pellets, ex-works, no taxes included.
The domestic prices were positively affected lower Brazil-China freight rate as the domestic price is based on FOB prices, having CFR China as the reference.