With iron ore prices increased in the Chinese spot market, coupled with stable ocean freight rates, iron ore prices in Brazil have increased in average by $2/mt from last week.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $54/mt, the equivalent lumps $76/mt and blast furnace grade pellets at $116/mt, FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $48/mt for sinter feed fines, $70/mt for lumps and $110/mt for blast furnace grade pellets, ex-works, no taxes included.
The premium of the iron unit of Brazilian high-grade (65 percent iron contents) over the Australian 62 percent grade ore has declined to 16 percent this week, the lowest level since a peak of 37 percent was achieved in July 2018. The premium was irrelevant until late 2016, having since increased as a reflection of the Chinese demand for the superior performance of the ore in blast furnaces, environmental and operational wise.
In November, Brazil exported 30.74 million mt of iron ore (pellets excluded), destined chiefly to Asia (24.60 million mt, of which 19.49 million mt to China), followed by Europe (4.35 million mt), and the Middle East (1.38 million mt).
Pellet exports reached 3.20 million mt in November, destined to Asia (1.15 million mt), Europe (625,000 mt), Africa (514,000 mt), the US (377,000 mt) and South America (268,000 mt).