For the second consecutive week, iron ore prices in Brazil have increased in average by $10/mt from the previous week, reflecting not only the positive expectations for the world economy unveiled by the World Bank, but also active build-up of stocks by Chinese steelmakers, ahead of the celebration of their New Year in February. China currently accounts for 73 percent of purchases in the seaborne iron ore market.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $194/mt, the equivalent lumps at $205/mt and blast furnace grade pellets at $222/mt, all CFR China conditions, dry basis.
In the Brazilian domestic market, such prices now are respectively $171/mt, $182/mt, and $199/mt, ex-works, no taxes included.
In December, Brazil exported 31.89 million mt of iron ore (pellets excluded) and 1.27 million mt of pellets, comparable respectively to 28.45 million mt and 700,300 mt in November.
The main destinations of the Brazilian iron ore in December were Asia (28.04 million mt, of which 23.64 million mt to China), the EU (1.77 million mt), and Turkey (792,100 mt), while smaller volumes were shipped to the Middle East and Latin America.
The main destinations of the pellets were the US (300,000 mt), Japan (278,000 mt) and China (244,200 mt), while smaller volumes were shipped to Trinidad and Tobago, Argentina, Germany and Italy.