The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $117/mt today, against $121/mt on September 30, CFR China.
On the first day after the holidays in China, iron ore prices have shown high volatility, with some investors quitting their buying positions to guarantee profits, claiming that the authorities have failed to meet expectations for more intensive measures to stimulate the local real estate market.
Such measures were expected to be announced in a conference that took place Tuesday morning, but according to analysts, it has failed to give indications of more incentives.
The export price of blast furnace grade pellets is $134/mt against $138/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 8.2 percent against 6.8 percent previously, 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 $86/mt for the iron ore and $103/mt for the pellets against $90/mt and $107/mt previously, ex-works, no taxes included.
In September, Brazil exported 34.467 million mt of iron ore (pellets excluded) and 2.402 million mt of pellets against respectively 32.075 million mt and 2.239 million mt in August.
The iron ore exports were destined to Asia (31.035 million mt, of which 27.967 million mt to China), the Middle East (1.736 million mt), and Europe (1.089 million mt), while lower volumes were shipped to Mexico, Algeria, and Argentina.
The pellets were destined to Africa (628,300 mt), Asia (607,300 mt), Europe (302,400 mt), Argentina (266,400 mt), the US (263,400 mt), Trinidad and Tobago (169,300 mt), and the Middle East (165,600 mt).