A source from a Brazilian steel producer told SteelOrbis that the premium of the steelmaking grade pellets over sinter feed fines is unchanged at $35/mt, despite the collapse of a dam that stopped operations at the pellet producer Samarco.
“The pellet premium did not change so far and we believe that it will not increase at least until the end of the first quarter of 2016,” he said, adding that there are huge volumes of pellets in stocks, not only with consumers, but also with Samarco and Vale.
But he warned that a consumer of the DRI grade pellet in Latin America was informed that the next shipments of the product will have the price increased, but he is not sure about the figures involved.
A second source, from an iron ore miner, told SteelOrbis that the pellet premium did not increase so far, but a declining trend has stopped, in his view reflecting the accident at Samarco.
The last FOB average prices of the pellets exported by Samarco were $75.50/mt in October and $74.91/mt in September.
Considering the DRI grade pellet only, the last FOB price was a shipment by Samarco in September to the Point Lisas plant of ArcelorMittal, in Trinidad & Tobago, at $86.14/mt.