The price of the Brazilian high-grade iron ore, 65 percent iron contents, is $112/mt today against $117/mt on 11 November, CFR China.
According to analysts, the decline to the lowest price level since September 26, 2024, reflects increased offer of the ore in the seaborne market, coupled to lower expectations for the steel demand in China, despite perspectives about new incentives to the construction industry to be announced by the country’s authorities.
The export price of blast furnace grade pellets is $129/mt, down from $133/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 10.7 percent against 10.2 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 $87/mt for the iron ore and $104/mt for the pellets against respectively $93/mt and $110/mt previously, ex-works, no taxes included. Such prices were negatively affected by higher Brazil-China freight rate, as the domestic price is based on FOB prices, with CFR China as the reference.
In November, preliminary numbers from customs point to a combined volume of iron ore and pellets, lower than the 35.27 million mt exported from Brazil in October.