The price of Brazilian high-grade ore, 65 percent iron contents, increased to $109/mt CFR China conditions from the previously reported level of $102/mt CFR on November 18.
The increase reportedly reflects positive expectations derived from economic stimulus measures that are set to be adopted by the People’s Bank of China, chiefly related to housing industry activity.
Sources also mentioned that the Chinese steel industry has already reduced production, in line with determinations to limit production of this year to the volume produced last year, so until the end of this year the country’s steel production pace is expected to return to normal levels, with a positive impact on iron ore prices.
In a similar trend, the price of Brazilian blast furnace grade pellets increased to $165/mt, from $158/mt previously, with stable premium in relation to the equivalent sinter feed fines.
Conversely, the premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 8.9 percent against 11.4 percent previously. The premium is at the lowest level in three months, reflecting a weak demand for costly products amid reduced steel prices.
In the Brazilian domestic market, the prices reportedly increased to $80/mt for the ore and $135/mt for the pellets, ex-works, no taxes included, against $73/mt and $128/mt previously, respectively.
Preliminary numbers from customs remain pointing to an increase in November from the combined iron ore and pellet exports from Brazil in October, at 30.86 million mt.