A source close to SteelOrbis in Brazil said that DRI grade pellets are commanding a premium of $42/mt over the price of sinter feed fines, compared to $40/mt recently, having reportedly reached $88/mt, FOB conditions, for export.
For blast furnace grade pellets, such premium is now around $34/mt, also compared to $40/mt recently, having reportedly reached $80/mt, FOB conditions, for export.
The source added that the higher premium for DRI grade pellet was expected, as the product is scarce due to the stoppage of pellet producer Samarco, while for blast furnace grade pellets, in his view, the integrated steel producers are not willing to accept a higher premium, giving preference to the increased use of sinter feed fines and lumps.
In Brazil, for spot sales, sinter feed fines of 65 percent iron contents are exported at $46/mt, lumps at $51/mt and BF pellets at $80/mt, FOB conditions.
In the Brazilian domestic market, the price of sinter feed fines is at $41/mt, lumps at $46/mt and BF pellets are now sold at $77/mt, also FOB conditions.