Brazilian steel producers are paying a premium over price of sinter feed fines, for iron ore pellets, in the $32/mt to $40/mt range, different local sources told SteelOrbis.
According to sources, Vale and the steelmakers have supply contracts with different price clauses, based on indexes, less logistics Brazil-China, plus premium.
One of the sources said that the last acquisition was closed at $75/mt, CFR conditions, considering $52/mt for the reference price, $17/mt for Brazil-China logistics and a premium of $40/mt over the sinter feed fines.
Two other sources quoted a premium of $32/mt and the resulting price of $67/mt, under the same conditions.
In June, Vale shipped pellets to China at $73/mt, to the EU at $66/mt, to the Middle East at $77/mt, to Africa at $75/mt, to the US at $98/mt, to Latin America at $73/mt and to Trinidad & Tobago at $72/mt, all FOB conditions.