Although the price of Brazilian high-grade ore, 65 percent iron contents, increased to $119/mt CFR China conditions from $117/mt on November 24, sources believe prices for all iron ore grades will trend more stable after variations throughout November.
However, the surge of a new variant of the Covid 19 has raised fears among sources about its impact on economic activity, particularly in China, that could ultimately affect iron ore prices.
Meanwhile, with a reduced premium in relation to the equivalent sinter feed fines, the price of the Brazilian blast furnace grade pellets declined to $169/mt, from $173/mt previously, under the same conditions.
The premium of the high-grade ore, in relation to the 62 percent iron Australian ore, is now 8.3 percent, against 8.5 percent previously, in a downtrend since early November, still reflecting a weak demand for costly products amid reduced steel prices.
In the Brazilian domestic market, the price of the ore reportedly increased to $89/mt, while for pellets declined to $140/mt, ex-works, no taxes included, against $87/mt and $143/mt previously, respectively.
Preliminary numbers from customs are pointing to stability in November from the combined iron ore and pellets exports from Brazil in October, 30.86 million mt.