A source from a major slab producer in Brazil told SteelOrbis that Vale and small iron ore miners have reduced the prices of sinter feed fines and iron ore lumps in the domestic market.
According to the source, sinter feed fines (0.15mm to 6.35mm thickness range) are now supplied, CFR, no taxes included, in a range of $23/mt to $26/mt, compared to a reference price of $35/mt on early December 2015.
For lumps, in the 10mm to 40mm thickness range, are now supplied under the same conditions at $29.25/mt, against $39/mt on early December 2015.
The source mentioned that reduction of price for sinter feed fines and lumps follow the same reasons behind the lower prices for other steel products, such as pellets and small lumps: the lower international prices for both iron ore and steel products, coupled to the reduced steel production and consequent iron ore demand from most of the local integrated steel producers.
Another market source told SteelOrbis that with the lower prices, Vale plans to recover the market from the steel producers that decided to develop their own iron ore production, such as Usiminas, Gerdau and ArcelorMittal.