A source from a major slab producer in Brazil told SteelOrbis that the company paid in May $67/mt for iron ore pellets, CFR supplied by Vale, no taxes included.
The price compares, under the same conditions, with $62.74/mt paid in April, a 6.8 percent increase, confirming market assumptions that pellets have a different price dynamics when compared to other iron ore products, as small tonnages of pellets are always needed to feed blast furnaces, while DRI grade pellets are the basic raw material for DRI plants.
The source mentioned that for sinter feed fines the price in May was $35/mt, also CFR no taxes included, a reduction of almost ten percent from the $38.81/mt of April, which in his view reflects both market conditions and punctual quality differences of the ore.
In May, Brazil exported pellets at an average FOB price of $73/mt and other iron ore products at an average FOB price of $27/mt, the later not viewed by analysts as representative of market conditions, but as a reference price to be fixed upon arrival of the ore at the destination.