During the first week of June, Brazil has exported 7.22 million mt of iron ore and pellets, pointing to roughly 28.90 million mt for the whole month, comparable to 20.03 million mt in May.
The increased export pace is attributed by sources to the port of Ponta da Madeira (PDM), which was partially idled for maintenance during most of May. PDM is the port used by Vale to export iron ore produced at its Northern system of mines.
However, the volume exported during the first week of June was not affected by the suspension of operations at Vale’s system of mines in Itabira, in the southeastern state of Minas Gerais. A production guidance report issued by Vale states that a production loss of 2.7 million mt per month is expected as result of the Itabira stoppage, which could result in a volume of 26.2 million mt being exported from Brazil in June, still far from last year’s average of 29.0 million mt per month.
As for current Brazilian iron ore export offers, sinter feed fines of 65 percent iron contents are now negotiated at $118/mt, equivalent lumps at $128/mt and blast furnace grade pellets at $135/mt, all CFR China conditions, dry basis, stable since yesterday.
In the domestic market, such prices are $89/mt, $102/mt and $108/mt, respectively, ex-works conditions, wet basis, no taxes included.