The price of the Brazilian high-grade ore, 65 percent iron contents, declined from $109/mt on November 9 to $102/mt this week, CFR conditions, a level not seen since May 2020. The decline reportedly reflects a new round of controls imposed on blast furnace operation and emissions restrictions in the city of Handan in the Hebei province of China.
The price of Brazilian blast furnace grade pellets declined to $158/mt, from $165/mt previously, with a stable premium in relation to the equivalent sinter feed fines.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore is now 11.4 percent, against 13.1 percent previously, a level still reflecting its high demand, despite the reduction.
Conversely, in the Brazilian domestic market iron ore prices reportedly increased to $73/mt for the ore and $158/mt for the pellets, ex-works, no taxes included, against $60/mt and $116/mt previously, respectively. Such a sharp increase reflects reduced ocean freight prices, as the domestic prices are based on FOB quotations.
Preliminary numbers from customs are pointing to an increase in November from the combined iron ore and pellet export from Brazil in October, 30.86 million mt.