Brazilian high-grade iron ore (65% Fe) is now priced at $120/mt, up from $117/mt last week, CFR China.
Iron ore prices in China are currently supported by local steel producers’ anticipated purchases to restock inventories before February’s holidays, when logistics become limited.
The export price of blast furnace grade pellets is now $139/mt, against $136/mt previously, CFR China, reflecting a stable premium relative to equivalent sinter feed fines.
The premium for Brazilian high-grade ore, containing 65 percent iron, relative to Australian 62 percent iron ore, based on their iron units, is 7.8 percent, against 7.1 percent previously, remaining low in historical terms.
In the Brazilian domestic market, reference prices are now $95/mt for the ore and $114/mt for pellets, against respectively $89/mt and $108/mt previously, ex-works and excluding taxes.
Such domestic prices were positively affected by lower Brazil-China freight rates, as the Brazilian domestic price is based on FOB conditions, having CFR China as reference.