The premium associated to iron ore lumps in relation to equivalent sinter feed fines has increased over the last two weeks from $9.1/mt to $14.3/mt, according to a Brazilian miner source.
In his view, the increase reflects not only a demand for a product with limited availability, but also a search for the improved productivity, associated with lumps, in blast furnaces operations.
With slightly increased prices in the Chinese spot market, coupled to a small increase in average ocean freight rates, the price of the Brazilian sinter feed fines have reached a sixth week of increase, in average by $1/mt from last week.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $61/mt, lumps at $75/mt and blast furnace grade pellets at $105/mt, FOB conditions.
In the Brazilian domestic market, the prices are now $55/mt for sinter feed fines, $69/mt for lumps and $99/mt for blast furnace grade pellets, ex-works, no taxes included.
Preliminary numbers from the Brazilian customs authorities point to a small reduction in the volume of iron ore and pellets exported in July, from the 33.7 million mt exported in June.