An increase in iron ore prices in the Chinese spot market was partially offset, in FOB terms, by an increase in ocean freight rates, resulting in Brazilian ore prices increasing in average by $1/mt from last week.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $66/mt, the equivalent lumps $87/mt and blast furnace grade pellets at $124/mt, all FOB conditions.
In the Brazilian domestic market, for equivalent ores, the prices are $60/mt for sinter feed fines, $81/mt for lumps and $118/mt for blast furnace grade pellets, ex-works, no taxes included.
The premium for Brazilian high-grade ore of 65 percent iron contents, over the 62 percent iron grade, declined to 26 percent this week, against a peak of 37 percent on mid-July 2018, possibly reflecting reduced demand from Chinese consumers due to upcoming seasonal steel production cuts in the winter.
Preliminary indications from Brazilian customs authorities point to an increase in October from the 33.9 million mt of combined iron ore and pellet exported in September.