The price of Brazilian high-grade ore, 65 percent iron contents, increased to $162/mt, CFR China conditions, from $153/mt on January 17, reflecting the highest price since early November 2021.
Similarly, the price of Brazilian blast furnace grade pellets increased to $221/mt from $207/mt previously, under the same conditions, in an increase also reflecting a higher premium ascribed by the market to the product.
A positive outlook for iron ore prices remains based on increased Chinese demand, following the New Year holiday period and the Winter Olympics in Beijing next month. A supply shortage due to weather-related operational problems in Brazil is also expected to positively affect prices going forward.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore, declined slightly to 18.4 percent from 18.8 percent previously, still reflecting a perspective by the market of a shortage of the high-grade Brazilian ores and pellets.
In the Brazilian domestic market, the prices of iron ore and pellets are now respectively $140/mt and $199/mt, against $128/mt and $182/mt previously, ex-works, no taxes included.
In addition to higher iron ore prices, the price increase also reflects the reduced ocean freight rates from Brazil to China, as the domestic price is based on FOB conditions.