Reflecting the lower prices in the Chinese spot market and taking into account slightly increased ocean freight charges, spot iron ore prices for export in Brazil decreased overall in the last week.
Sinter feed fines of 62 percent iron contents are now exported FOB conditions at $38/mt, lumps at $43/mt and blast furnace grade pellets at $70/mt, FOB conditions, against $40/mt, $45/mt and $71/mt, respectively, one week ago.
In the Brazilian domestic market, sinter feed fines are reportedly supplied to integrated producers at $33/mt, lumps at $38/mt and pellets at $66/mt, ex-works conditions, no taxes included.
In August, Brazil exported 32.233 million mt of iron ore (pellets excluded), the highest monthly volume so far in 2016.
Pellet exports in August increased from July by 34 percent to 2.269 million mt, which is still far from monthly averages of more than 4.0 million mt seen over recent years.
Analysts believe that the demand for pellets is expected to recover, chiefly in China, as the utilization of the product by integrated steel producers is used as an alternative to reduce the levels of emissions at blast furnaces.