Brazilian iron ore prices declined again over the week, reflecting lower prices in the Chinese spot market.
However, lower ocean freight rates, coupled to lower rate of humidity in the ore, had a positive impact on the price level, reducing its decline. The lower rate of humidity is associated with the end of the current rainy season in Brazil.
As the iron ore price in the Chinese spot market is measured on a dry basis, the humidity rate in Brazil, currently at 8 percent in average for fines, impacts the ocean freight cost and the local price of the ore as consequence.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $67/mt, lumps at $70/mt and blast furnace grade pellets at $112/mt, FOB conditions.
In the domestic market, the prices are now $61/mt for sinter feed fines, $65/mt for lumps and $106/mt for blast furnace grade pellets, ex-works, no taxes included.