Brazilian high-grade iron ore price shows small decline

Tuesday, 05 December 2023 21:33:57 (GMT+3)   |   Sao Paulo
       

The price of Brazilian high-grade iron ore, 65 percent iron contents, is $143/mt today, against $145/mt on December 1, CFR China conditions.

Maintaining an oscillating pattern, the prices reflect reduced optimism by players in relation to the economic recovery in China, while the iron ore market supervision by Chinese authorities continues to play a major role.

In this regard, Eduardo Bartolomeo, the CEO of Brazilian miner Vale, speaking today in the London Vale Day, complained about such supervision, pondering that prices should remain subject to supply/demand fundamentals.

He added that, over the next years, the company will maintain its investments in increasing the iron ore production, but the focus will be in maintaining the average iron contents of the ore above 65 percent.

In his view, this strategy is not only more profitable for the company, but also helps the integrated steel producers in the decarbonization of their operations.  

The company has plans to produce between 340 and 360 million mt of iron ore in 2026, against an expected 320 million mt in 2023.

The Brazilian high-grade product has now a premium of 4.4 percent in relation to the 62 percent Australian iron ore, against 4.2 percent previously, still reflecting an increased interest for high grade iron ore products and their higher productivity in blast furnaces.

The export price of blast furnace grade pellets is now estimated at $165/mt, CFR China, against $167/mt previously, reflecting a stable premium ascribed to the product in relation to the equivalent sinter feed fines.

In the Brazilian domestic market, the prices are estimated at $114/mt for the iron ore and $136/mt for the pellets, against $116/mt and $138/mt previously, ex-works, no taxes included.

In November, Brazil exported an estimated combined 31.60 million mt of iron ore and pellets, against 33.81 million mt in October.


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