With higher prices for sinter feed fines in the Chinese spot market, coupled with stable ocean freight rates and a stable premium for lumps and pellets, Brazilian iron ore prices have increased by an average of $3/mt on a weekly basis. It is the third consecutive weekly increase, driving prices to levels last seen in July 2019.
With today’s prices, the premium per iron unit of the Brazilian 65 percent ore, over the 62 percent Australian ore, is equivalent to 9.3 percent, a level last seen in July 2019. Such premium reflects the demand by steel companies for increased productivity and low emissions at their blast furnaces.
Sinter feed fines prices of 65 percent iron contents are negotiated at $110/mt, equivalent lumps at $126/mt and equivalent blast furnace grade pellets at $148/mt, all CFR China conditions, dry basis.
In the Brazilian domestic market, for wet basis, such prices are now respectively $75/mt, $91/mt and $113/mt, ex-works, no taxes included.
In December, Brazil exported 22.50 million mt of iron ore (pellets excluded) and 2.12 million mt of pellets, comparable respectively with 25.91 million mt and 1.34 million mt in November.
The main destinations for iron ore in December were Asia (19.27 million mt, of which 16.50 million mt to China), the EU (1.88 million mt), the Middle East (904,800 mt) and Turkey (246,600mt), while the main destinations for pellets were Asia (1.04 million mt, of which 502,900 mt to China), Africa (474,000 mt), the US (255,500 mt) and the Middle East (202,200 mt).