The price of Brazilian high-grade iron ore, 65 percent iron contents, is $129/mt today, against $128/mt on December 16, CFR China conditions.
The increase, consistent since early November, still reflects the softening of measures taken by Chinese authorities to fight the Covid-19 pandemic, although analysts fear that the resulting spread of the virus will negatively affect the Chinese economy, ultimately reducing the demand for iron ore in the short term.
Expectations are now for the price of the Brazilian high grade product hovering in a FOB range of $110/mt to $130/mt during the first quarter of 2023.
The Brazilian high-grade product has now a premium of 8.3 percent in relation to the 62 percent Australian iron ore, against 8.5 percent previously, still reflecting an increased demand for premium iron ore products.
The export price of blast furnace grade pellets is now $151/mt, CFR China, against $150/mt previously, reflecting stable premium ascribed to the product in relation to the equivalent sinter feed fines.
In the Brazilian domestic market, the prices are now estimated at $108/mt for the iron ore and $131/mt for the pellets, against respectively $107/mt and $130/mt previously, ex-works, no taxes included.
In November, Brazil exported 28.63 million mt of iron ore (pellets excluded) and 1.35 million mt of pellets. Preliminary indications are now pointing to a reduced combined volume being exported in December, possibly reflecting the intense rainfall affecting mining and transportation of the ore in the southeastern state of Minas Gerais, where part of the operations of Vale and other miners is located.