Brazilian high-grade iron ore (65% Fe) is now priced at $118/mt, up from $117/mt last week, CFR China.
According to analysts, prices are supported by increased demand for infrastructure in China, positively affecting the demand for steel products and for iron ore as a consequence.
The export price of blast furnace grade pellets is now $137/mt, against $136/mt previously, CFR China, reflecting a stable premium relative to equivalent sinter feed fines.
The premium for Brazilian high-grade ore, containing 65 percent iron, relative to Australian 62 percent iron ore, based on their iron units, is 6.5 percent, against 6.9 percent previously.
The Brazilian high-grade ore premium has declined due to Vale's new strategy of exporting lower grade products to Asian markets, aiming for higher marginal gains despite reduced prices and less demand from steel producers for premium performance.
In the Brazilian domestic market, reference prices are now $91/mt for ore and $110/mt for pellets, against respectively $90/mt and $108/mt previously, ex-works and excluding taxes.
Preliminary data indicate that the total volume of iron ore and pellets exported from Brazil in November is expected to be comparable to the 40.7 million metric tons recorded in October.
