An increase of iron ore prices the Chinese spot market, coupled with stable ocean freight rates, resulted in Brazilian iron ore prices increasing in average by $1/mt from last week.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $67/mt, the equivalent lumps $88/mt and blast furnace grade pellets at $125/mt, FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $61/mt for sinter feed fines, $82/mt for lumps and $119/mt for blast furnace grade pellets, ex-works, no taxes included.
The premium of the iron unit of the Brazilian high-grade ore of 65 percent iron contents, over the 62 percent iron grade, declined to 24 percent from 26 percent last week.
The premium was irrelevant until late 2016, having reached a peak of 37 percent in mid-July 2018, due to intensive demand from Chinese consumers in search of the high productivity and low emissions associated with the premium ores in the operation of blast furnaces.
The current decline of the premium possibly reflects reduced demand from China due to the future seasonal steel production cuts associated with the winter.