The price of Brazilian high-grade iron ore, 65 percent iron contents, declined to $139/mt from $141/mt on Thursday last week, CFR China conditions, reflecting low market liquidity during the Chinese holiday period.
Conversely, the price of the Brazilian blast furnace grade pellet is now $180/mt, against $175/mt previously, under the same conditions. The increased premium for pellets has more than compensated for the reduced price of the reference high-grade ore.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 13.3 percent, against 16.0 percent previously, also reflecting the lower liquidity in the market, although maintaining a high value in historical terms.
In the Brazilian domestic market, the prices are estimated at $95/mt for the ore and $136/mt for the pellets, ex-works, no taxes included, against $97/mt and $131/mt previously, respectively, also reflecting the increased premium for pellets.
In September, Brazil exported 32.36 million mt of iron ore (pellets excluded) and 1.32 million mt of pellets, against 32.65 million mt and 1.38 million mt, respectively, in August.
Previous expectations were for a reduced volume being exported in September, but data accumulated for the last week of the month resulted in volumes resembling August.
Asia was the main destination of the ore (28.06 million mt, of which 25.50 million mt to China), followed by Europe (2.50 million mt) and the Middle East (1.37 million mt). The main destination of the pellets was also Asia (568,500 mt), followed by South America (263,300 mt) and Europe (249,500 mt).