The combined exports of iron ore and pellets from Brazil reached 28.26 million mt in August, 9.4 percent less than in July, according to the country´s ministry of development, industry and foreign trade, MDIC.
Iron ore exports went down by 5.0 percent to 24.59 million mt, at an average price 1.5 percent higher, $61.46/mt, while pellets exports went down by 30.8 percent to 3.68 million mt, at an average price 7.1 percent lower, $108.19/mt.
The main destinations of the iron ore were Asia (down 2.1 percent to 19.46 million mt, of which 14.77 million mt to China, a 6.4 percent reduction), Europe (down 28.2 percent to 2.87 million mt), the Middle East (up 20.7 percent to 1.34 million mt) and South America, down 10.5 percent to 805,000 mt.
The main destinations of the pellets were Asia (down 39.3 percent to 1.34 million mt), the EU (up 9.3 percent to 1.32 million mt), the Middle East (up 4.2 percent to 337,000mt), the Caribbean (down 18.9 percent to 277,000mt) and Africa (down 70.9 percent to 156,000mt).
In the Brazilian domestic market, iron ore prices are facing a downward pressure due to the increased offer derived from reduced exports.
An independent pig iron producer told SteelOrbis that its iron ore supplier has offered him a 22 percent price reduction during the renegotiation of their iron ore supply contract.
An iron ore and steel producer told SteelOrbis that the company is considering a sharp reduction of its iron ore production, limiting the output to its own consumption, due to the lack of profitability in its export operations.
An industry source told SteelOrbis that the domestic price of the sinter feed fines, with 64 percent iron contents, is currently in the range of $55/mt, FOB mine ex-taxes, but including PIS/Cofins, in Brazil’s southeastern region.