The price of Brazilian high-grade ore, 65 percent iron contents, increased to $117/mt, CFR China conditions, from $109/mt on November 22.
The increase was received with a certain degree of surprise by sources, after new restrictions for emissions were implemented in China’s steel hub of Tangshan, but perspectives for increased steel production in the country have resulted in a positive impact on prices.
Similarly, the price of Brazilian blast furnace grade pellets increased to $173/mt, from $165/mt previously, under the same conditions, with a stable premium in relation to the equivalent sinter feed fines.
Conversely, the premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 8.5 percent, against 8.9 percent previously, still in a downtrend that reflects a weak demand for costly products amid reduced finished steel prices.
In the Brazilian domestic market, the prices reportedly increased to $87/mt for the ore and $143/mt for the pellets, ex-works, no taxes included, against $80/mt and $135/mt previously, respectively.
With a reduced volume of exports during the third week of this month, preliminary numbers from customs are now pointing to stability in November from the combined iron ore and pellets exports from Brazil in October, 30.86 million mt.