The price of the Brazilian high-grade ore, 65 percent iron contents, increased to $127/mt, CFR China conditions, from $119/mt on December 1. The price returned to a level last seen on October 29, reinforcing perspectives for an overall stable trend despite price variations.
Sources tell SteelOrbis that the optimism derives from expectations of higher steel production in China during December, as the reduction targets have already been achieved and steel producers are expected to increase iron ore acquisitions for restocking the product.
Meanwhile, the price of Brazilian blast furnace grade pellets increased to $178/mt, from $169/mt previously, under the same conditions.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 9.0 percent, against 8.3 percent previously, possibly reflecting a recovering demand for costly products.
In the Brazilian domestic market, the price of the iron ore reportedly increased to $95/mt, while pellet prices increased to $146/mt, ex-works, no taxes included, against $89/mt and $140/mt previously, respectively.
In November, Brazil exported 26.94 million mt of iron ore (pellets excluded) and 2.05 million mt of pellets, against respectively 29.05 million mt and 1.81 million mt in October. The main destinations of the iron ore were Asia (23.48 million mt, of which 19.75 million mt to China), Europe (1.85 million mt) and the Middle East (1.60 million mt).
For pellets, the destinations were Asia (1.05 million mt), Argentina (370,900 mt), Egypt (163,400 mt) and Trinidad and Tobago (159,800 mt), while smaller volumes were shipped to Algeria, the Netherlands, the US and Germany.