Brazilian high-grade iron ore (65% Fe) is now priced at $119/mt, up from $118/mt last week, CFR China.
According to analysts, prices remain positively affected by the demand for infrastructure works in China, despite increased iron ore shipments to the country expected for the rest of the year.
The export price of blast furnace grade pellets is now $137/mt, stable in the period, 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 6.8 percent, against 6.5 percent previously.
The Brazilian high-grade ore premium remains low in historical terms 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 the performance of premium products in blast furnaces.
In the Brazilian domestic market, reference prices are now $90/mt for the ore and $109/mt for pellets, against respectively $91/mt and $110/mt previously, ex-works and excluding taxes.
Such domestic prices were negatively affected by higher sea freight rates, as the domestic prices are based on FOB conditions, having CFR China as the reference.
In November, Brazil exported 33.122 million mt of iron ore (pellets excluded) and 1.343 million mt of pellets.
The main destinations of the ore were Asia (29.196 million mt, of which 24.216 million mt to China), Europe (1.563 million mt), the Middle East (1.493 million mt), South America (536,000 mt), and Egypt (333,200 mt).
The main destinations of the pellets were Egypt (330,500 mt), Asia (315,400 mt), Europe (240,300 mt), the US (233,300 mt), Argentina (144,700 mt), and Trinidad and Tobago (78,800 mt).