The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $119/mt today against $115/mt on October 22, CFR China.
According to sources, the higher prices reflect renewed expectations for more incentives from the Chinese authorities, temporarily outshining concerns related to the steel and iron ore demands, and to the wavering economic recovery of the country.
It was the higher price achieved in 12 days, in a pattern followed by other steel raw materials, such as coking coal and coke, which have seen price increases of more than four percent from October 25 to 28.
The export price of blast furnace grade pellets is $135/mt, up from $132/mt previously, CFR China, reflecting the same premium ascribed to the product in relation to the equivalent sinter feed fines.
The premium of the Brazilian high-grade ore, in relation to the Australian 62 percent iron ore, when considering their iron units, is 9.4 percent, against 9.8 percent previously, still reflecting increased interest, at such price level, by the integrated steel producers for the higher productivity and lower emissions of the premium ores when processed in blast furnaces.
In the Brazilian domestic market, the reference prices are $93/mt for the iron ore and $110/mt for the pellets against respectively $87/mt and $103/mt previously, ex-works, no taxes included. Such prices were positively affected by lower Brazil-China freight rates, as the domestic prices are based on FOB prices with CFR China as the reference.