Losing part of the gains achieved over the last few weeks, iron ore prices in Brazil have reduced in average by $2/mt on a weekly basis, reflecting lower prices in the Chinese spot market, coupled with stable ocean freight rates.
Sinter feed fines of 65 percent iron contents are now traded for export from Brazil at $70/mt, the equivalent lumps at $81/mt and blast furnace grade pellets at $115/mt, all FOB conditions.
In the Brazilian domestic market, the prices are now $64/mt for sinter feed fines, $75/mt for lumps and $109/mt for blast furnace grade pellets, all ex-works, no taxes included.
Preliminary indications from Brazilian customs authorities point to a reduction in January from the combined iron ore and pellet exports of 32.8 million mt in December.
Such reduction in volume is in line with the strategy of local miner Vale to give priority to the quality of the ore, rather than volume, to serve the Chinese market with high grade ore, as an alternative to increase productivity and reduce emissions at the country’s blast furnaces.