A combination of increased sea freight rates and higher moisture in the ore due to increased rains, coupled with lower premium for lumps and higher premium for pellets, resulted in the reduction of iron ore prices for sinter feed fines and lumps in Brazil, while the price of pellets increased.
Sinter feed fines of 65 percent iron contents are now being traded for export at $68/mt, lumps at $72/mt and blast furnace grade pellets at $113/mt, FOB conditions.
In the domestic market, the prices are now $63/mt for sinter feed fines, $67/mt for lumps and $108/mt for pellets, ex-works, no taxes included.
In December, the Brazilian exports of iron ore (pellets excluded) reached 32.187 million mt, 10.6 percent more than in November.
The main destinations were Asia (27.093 million mt, of which 21.245 million mt to China), the EU (3.012 million mt), the Middle East (1.253 million mt), Turkey (414,600mt) and Latin America (413,300mt).
The pellets exports fetched 2.928 million mt, a 25 percent increase from November, destined to the EU (1.062 million mt), Africa (735,200mt), Asia (457,400mt) and the US (367,600mt).
Pellets of the blast furnace grade are reportedly commanding a premium of $45/mt over sinter feed fines, while the premium for the DRI grade product is $55/mt.
A source linked to a local trader mentioned rumors that spot sales of blast furnace grades pellets in Brazil were commanding a premium of $65/mt over sinter feed fines, but the information could not be confirmed.