Iron ore spot prices in Brazil are showing an estimated average $2.00/mt reduction from last week, reflecting reduced prices in the Chinese spot market, coupled with stable ocean freight rates, resulting in FOB export prices of $44/mt for sinter feed fines (65 percent iron contents), $49/mt for lumps and $76/mt for BF grade pellets.
In the Brazilian domestic market, such prices are estimated at $39/mt for sinter feed, $44/mt for lumps and $72/mt BF grade pellets, all FOB, no taxes included.
A source linked to local iron ore miners told SteelOrbis that pellet prices remain in an upward trend, chiefly due to the scarcity derived from the stoppage of the Brazilian pellet producer Samarco last year.
In the case of DRI grade pellets, the premium over sinter feed fines has reportedly reached $42.50/mt, against $42.00/mt last week; FOB prices for export from Brazil are at $86/mt.
For BF grade pellets, the premium is currently at $32/mt, but there are expectations for an increase in the short term, derived not only from the reduced offer related to the problem at Samarco, but also to an increased demand from China, which is increasing the use of pellets at blast furnaces as an alternative to face stricter environmental regulations.